IDEAS home Printed from https://ideas.repec.org/p/iik/wpaper/257.html
   My bibliography  Save this paper

Agricultural Productivity and Structural Change: Is Relative Sectoral Price the Mirror Image of Relative Sectoral Productivity?

Author

Listed:
  • Kausik Gangopadhyay

    (Indian Institute of Management Kozhikode)

  • Debasis Mondal

    (Indian Institute of Management Kozhikode)

Abstract

We have examined the role of sectoral productivity in explaining the process of structural change and relative sectoral prices. Our simple two- sector general equilibrium model demonstrates that an improvement in agricultural productivity can relocate labour away from this sector. Contrary to the conventional wisdom that relative sectoral prices are a mirror image of relative sectoral productivities, we showed a U-shaped relation- ship between them. We estimated our model parameters using the simu- lated method of moments. Our model could largely replicate the farm versus non-farm relative price movement and the agricultural labour share of US economic history. JEL Classification: F43, O11, O41. Key Words: Agricultural productivity, Structural transformation, manufacturing productivity, Terms

Suggested Citation

  • Kausik Gangopadhyay & Debasis Mondal, 2018. "Agricultural Productivity and Structural Change: Is Relative Sectoral Price the Mirror Image of Relative Sectoral Productivity?," Working papers 257, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:257
    as

    Download full text from publisher

    File URL: https://iimk.ac.in/websiteadmin/FacultyPublications/Working%20Papers/2399March.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Agricultural Productivity;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iik:wpaper:257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sudheesh Kumar (email available below). General contact details of provider: https://edirc.repec.org/data/iikmmin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.