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Agricultural Productivity, Trade, and Industrialisation

Author

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  • Duranton, Gilles

Abstract

Traditional development economics states that industrialization must be positively correlated with agricultural development as in the American and many European cases. However, some recent industrialization experiences suggests a negative link which can be supported by a simple Ricardian argument. Yet this argument is not consistent with the agricultural 'leap forward' that often occurred before industrialization took place. Here, the author develops a model in which, for a closed economy, industrialization follows rising agricultural productivity. For a small open economy, multiple equilibria are possible and industrialization tends to be associated with low agricultural productivity but is triggered by sudden changes in it. Copyright 1998 by Royal Economic Society.

Suggested Citation

  • Duranton, Gilles, 1998. "Agricultural Productivity, Trade, and Industrialisation," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 220-236, April.
    • Handle: RePEc:oup:oxecpp:v:50:y:1998:i:2:p:220-36
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    Cited by:

    1. Jacob L. Weisdorf, 2006. "From domestic manufacture to Industrial Revolution: long-run growth and agricultural development," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 264-287, April.
    2. Pflüger, Michael & Tabuchi, Takatoshi, 2010. "The size of regions with land use for production," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 481-489, November.
    3. Wolf, Nikolaus, 2006. "Local comparative advantage: agriculture and economic development in Poland 1870 - 1970," Discussion Papers 2006/15, Free University Berlin, School of Business & Economics.
    4. Zulfiqar Bashir, 2000. "The Role of Agricultural Growth in South Asian Countries and the Affordability of Food: An Inter-country Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 751-767.

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