Rural non-farm development: a trade-theoretic view
A key component of rural development is the growth of production linkages between the farm and non-farm sectors. The growth of these linkages contributes to the development of agricultural clusters and to the increased articulation of the rural economy. This articulation process is modelled using a specific factors model with differentiated intermediate inputs or producer services produced under monopolistic competition. The implications of labour force growth, agricultural pricing policy, and import substitution industrialization policy on rural non-farm development are explored. The results suggest that agricultural clusters and the (dis)articulation of the farm and non-farm sectors are important aspects of rural development.
Volume (Year): 7 (1998)
Issue (Month): 4 ()
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