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The Role of Agricultural Productivity on Structural Change

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Abstract

Many authors have estimated and found that the productivity growth in agriculture was higher than that in non-agriculture in today’s richest countries. Several papers suggested that growth in agricultural productivity was essential for today’s richest countries to take off early. However, few articles noticed that growth in agricultural productivity is critical in driving structural change in today’s richest countries. This paper studies a two-sector neoclassical growth model with subsistence agricultural consumption and shows that growth in agricultural productivity plays a more important role than growth in non-agricultural productivity in governing massive structural change in today’s richest countries.

Suggested Citation

  • Been-Lon Chen & Shian-Yu Liao, 2014. "The Role of Agricultural Productivity on Structural Change," IEAS Working Paper : academic research 14-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    • Handle: RePEc:sin:wpaper:14-a007
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    2. Ma, Zhendong & Wang, Di & Feng, Fan & Zhao, Tianhui, 2025. "Moving out of agriculture: How trade liberalization affects agricultural productivity in China," China Economic Review, Elsevier, vol. 91(C).
    3. Chen, Been-Lon & Liao, Shian-Yu & Liu, Dongpeng & Liu, Xiangbo, 2023. "Optimal long-run money growth rate in a cash-in-advance economy with labor-market frictions," Macroeconomic Dynamics, Cambridge University Press, vol. 27(6), pages 1737-1766, September.
    4. Barker, Tom & Üngör, Murat, 2019. "Vietnam: The next asian Tiger?," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 96-118.
    5. Frank Davenport & Chris Funk & Gideon Galu, 2018. "How will East African maize yields respond to climate change and can agricultural development mitigate this response?," Climatic Change, Springer, vol. 147(3), pages 491-506, April.

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    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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