On why agriculture declines with economic growth
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 inc.o me elastic, so resources are diverted to their production even m open economies.
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- N/A, 1985. "United Nations," India Quarterly: A Journal of International Affairs, Indian Council of World Affairs, vol. 41(1), pages 122-125, January.
- Spraos, John, 1980. "The Statistical Debate on the Net Barter Terms of Trade between Primary Commodities and Manufactures," Economic Journal, Royal Economic Society, vol. 90(357), pages 107-28, March.
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