IDEAS home Printed from
   My bibliography  Save this article

On Why Agriculture Declines with Economic Growth


  • Kym Anderson


When economic growth is characterised by a slow rise in the demand for food and rapid growth in farm relative to non‐farm productivity, it is understandable that agriculture in a closed economy declines in relative terms as that economy develops. But why should agriculture decline in virtually all open growing economies as well, including those able to retain a comparative advantage in agricultural products? A key part of the answer is that the demand for non‐tradable goods tends to be income elastic, so resources are diverted to their production even in open economies.

Suggested Citation

  • Kym Anderson, 1987. "On Why Agriculture Declines with Economic Growth," Agricultural Economics, International Association of Agricultural Economists, vol. 1(3), pages 195-207, October.
  • Handle: RePEc:bla:agecon:v:1:y:1987:i:3:p:195-207
    DOI: 10.1111/j.1574-0862.1987.tb00020.x

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    Other versions of this item:

    More about this item


    Access and download statistics


    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:bla:agecon:v:1:y:1987:i:3:p:195-207. 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: . General contact details of provider: .

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: .

    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.