IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v78y1988i3p431-43.html
   My bibliography  Save this article

On the Organization of Rural Markets and the Process of Economic Development

Author

Listed:
  • Drazen, Allan
  • Eckstein, Zvi

Abstract

The authors consider how the organization of rural markets will affect capital accumul ation and long-run aggregate income in the development process. They show that in a simple, dual economy, overlapping-generations model, c apital accumulation and aggregate income will be lowest when both fac tor markets in the agricultural sector are fully competitive. Both ca pital and aggregate income will be higher when land is not traded but the labor market is competitive, and highest in the absence of compe titive markets in both factors in the agricultural sector, when incom e distribution favors rural workers over landlords. Copyright 1988 by American Economic Association.

Suggested Citation

  • Drazen, Allan & Eckstein, Zvi, 1988. "On the Organization of Rural Markets and the Process of Economic Development," American Economic Review, American Economic Association, vol. 78(3), pages 431-443, June.
  • Handle: RePEc:aea:aecrev:v:78:y:1988:i:3:p:431-43
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0002-8282%28198806%2978%3A3%3C431%3AOTOORM%3E2.0.CO%3B2-S&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:itaxpf:v:24:y:2017:i:2:d:10.1007_s10797-016-9403-6 is not listed on IDEAS
    2. repec:fec:journl:v:12:y:2017:i:4:p:660-676 is not listed on IDEAS
    3. Peter Rangazas & Alexandros Mourmouras, 2013. "Wage and Fertility Gaps in Dual Economies," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 59-83, June.
    4. Ho, Chi Pui, 2016. "Rise of Women in Unified Growth Theory: French Development Process and Policy Implications," MPRA Paper 73864, University Library of Munich, Germany.
    5. Yu Chen & Haiwen Zhou, 2017. "An Overlapping-Generations Model of Firm Heterogeneity in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 12(4), pages 660-676, December.
    6. Haiwen Zhou & Ruhai Zhou, 2016. "A Dynamic Model of the Choice of Technology in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 11(3), pages 498-518, September.
    7. Rodriguez Acosta, Mauricio, 2016. "Essays in political economy and resource economic : A macroeconomic approach," Other publications TiSEM 1e39ef1b-43a2-4f95-892c-6, Tilburg University, School of Economics and Management.
    8. Monchuk, Daniel C. & Miranowski, John A., 2002. "The Effect Of Innovative Behavior And Technological Spillovers On Employment Growth In The Us Midwest," 2002 Annual meeting, July 28-31, Long Beach, CA 19773, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Claudio Araujo & Catherine Araujo Bonjean & Jean-Louis Combes & Pascale Combes-Motel, 2006. "Insécurité foncière et croissance économique au Brésil," Revue d’économie du développement, De Boeck Université, vol. 14(1), pages 79-97.
    10. Gersbach, Hans & Siemers, Lars-H. R., 2010. "Land Reforms And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 14(04), pages 527-547, September.
    11. Love, David R. F., 1997. "A dynamic general equilibrium model of industrialization when manufactures are unnecessary," Journal of Development Economics, Elsevier, vol. 54(2), pages 357-385, December.
    12. Skinner, Jonathan, 1996. "The dynamic efficiency cost of not taxing housing," Journal of Public Economics, Elsevier, vol. 59(3), pages 397-417, March.
    13. Bencivenga, Valerie R & Smith, Bruce D, 1997. "Unemployment, Migration, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 582-608, June.
    14. Graziella Bertocchi, 2006. "The Law of Primogeniture and the Transition from Landed Aristocracy to Industrial Democracy," Journal of Economic Growth, Springer, vol. 11(1), pages 43-70, March.
    15. Raymond Riezman & Ping Wang & Eric Bond, 2015. "Urbanization and Economic Development: A Tale of Two Barriers," 2015 Meeting Papers 566, Society for Economic Dynamics.
    16. Raymond Riezman & Ping Wang & Eric Bond, 2012. "Trade, Urbanization and Capital Accumulation in a Labor Surplus Economy," 2012 Meeting Papers 776, Society for Economic Dynamics.
    17. Ho, Chi Pui, 2016. "Industrious Selection: Explaining Five Revolutions and Two Divergences in Eurasian Economic History within a Unified Growth Framework," MPRA Paper 73862, University Library of Munich, Germany.
    18. Jordan Rappaport & Jeffrey D. Sachs, 2001. "The U.S. as a coastal nation," Research Working Paper RWP 01-11, Federal Reserve Bank of Kansas City.
    19. Peter Stauvermann, 2002. "Endogenous growth, land and intemporal efficiency," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 10(1), pages 63-77.
    20. Skinner, Jonathan, 1989. "Housing wealth and aggregate saving," Regional Science and Urban Economics, Elsevier, vol. 19(2), pages 305-324, May.
    21. ZHANG Wei-Bin, 2015. "Values Of Land And Renewable Resources In A Three-Sector Economic Growth Model," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 10(1), pages 156-186, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:78:y:1988:i:3:p:431-43. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.