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Agricultural distortions and structural change

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  • Grabowski, Richard

Abstract

Many developing countries have chosen to use a variety of policy instruments to transfer resources out of agriculture and to the manufacturing and, in some countries, the service sector. It will be argued in this paper that such policies slow structural change, create incentives for capital intensive production in non-agricultural sectors, and slow the process of technical innovation in agriculture. These arguments will be illustrated by examining the recent growth experience in India.

Suggested Citation

  • Grabowski, Richard, 2013. "Agricultural distortions and structural change," Journal of Asian Economics, Elsevier, vol. 24(C), pages 17-25.
  • Handle: RePEc:eee:asieco:v:24:y:2013:i:c:p:17-25
    DOI: 10.1016/j.asieco.2012.10.002
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Alston, Julian M. & Pardey, Philip G. & Roseboom, Johannes, 1998. "Financing agricultural research: International investment patterns and policy perspectives," World Development, Elsevier, vol. 26(6), pages 1057-1071, June.
    3. Gulati, Ashok & Pursell, Garry, 2008. "Distortions to Agricultural Incentives in India and Other South Asia," Agricultural Distortions Working Paper 48634, World Bank.
    4. Shenggen Fan & Ashok Gulati & Sukhadeo Thorat, 2008. "Investment, subsidies, and pro-poor growth in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 163-170, September.
    5. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
    6. Benjamin N. Dennis & Talan B. İşcan, 2011. "Agricultural Distortions, Structural Change, and Economic Growth: A Cross-Country Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 881-902.
    7. Gordon, Roger & Li, Wei, 2009. "Tax structures in developing countries: Many puzzles and a possible explanation," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 855-866, August.
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    12. Bramall, Chris, 2000. "Sources of Chinese Economic Growth, 1978-1996," OUP Catalogue, Oxford University Press, number 9780198296973.
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    More about this item

    Keywords

    Structural change; Agriculture; Policy distortions;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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