Optimization of rural - urban development and migration
This paper deals with rural - urban migration and the impact of migration on regional development. The general problem of optimal allocation of production factors in time and space is introduced in order to derive the most satisfactory migration strategy. In describing the regional economy by means of a generalized Cobb - Douglas production function, the general problem is decomposed into two levels. At the first level, optimal allocation of factors in time is solved in an explicit form using the generalized Hoelder inequality. At the second level, a spatial strategy is derived and the principle of spatial allocation of production factors is formulated. By use of the optimal strategies, the simple two-sector model (that is, agriculture and the rest of the economy) is investigated, and the labor surpluses in Polish agriculture and in an agricultural region in Poland are calculated.
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