Increasing Returns in Industry and the Role of Agriculture in Growth
Despite diminishing returns in agriculture, the production of food is not a binding constraint on growth in industrialized countries. A model is constructed in which growth is associated with a movement of labor out of agriculture and into industry, where increasing returns prevail. If the increasing returns are large enough, long-run growth can be sustained by the production of even cheaper farm machinery. However, there may be a take-off problem if the economy starts near subsistence; it may be impossible to feed workers who move into industry in the periods before their output leads to greate r food production. Copyright 1988 by Royal Economic Society.
Volume (Year): 40 (1988)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/Email:
|Order Information:||Web: http://www.oup.co.uk/journals|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kaldor, Nicholas, 1975. "What Is Wrong with Economic Theory," The Quarterly Journal of Economics, MIT Press, vol. 89(3), pages 347-57, August.
- Kaldor, Nicholas [Lord], 1976. "Inflation and Recession in the World Economy," Economic Journal, Royal Economic Society, vol. 86(344), pages 703-14, December.
- Costabile, Lilia & Rowthorn, Bob, 1985. "Malthus's Theory of Wages and Growth," Economic Journal, Royal Economic Society, vol. 95(378), pages 418-37, June.
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:40:y:1988:i:3:p:463-76. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.