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Agriculture, innovational ability, and dynamic comparative advantage of LDCs

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  • Mukesh Eswaran
  • Ashok Kotwal

Abstract

The goal of this paper is twofold: (1) to model a process of development based on the notion that the engine of growth is the generation of new ideas by skilled individuals, and (2) to explore the role of agricultural productivity growth in such a process. The key ingredients of our model are: preferences consistent with Engel's Law, and the asymmetry arising from there being a greater scope in industry than in agriculture for incremental innovation.

Suggested Citation

  • Mukesh Eswaran & Ashok Kotwal, 2001. "Agriculture, innovational ability, and dynamic comparative advantage of LDCs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(3), pages 275-289.
  • Handle: RePEc:taf:jitecd:v:10:y:2001:i:3:p:275-289
    DOI: 10.1080/09638190110061311
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    References listed on IDEAS

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    1. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    2. Eswaran, Mukesh & Kotwal, Ashok, 1993. "A theory of real wage growth in LDCs," Journal of Development Economics, Elsevier, vol. 42(2), pages 243-269, December.
    3. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
    4. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
    5. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
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