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Green Revolutions and Miracle Economies : Agricultural Innovation, Trade and Growth

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  • Brishti Guha

    () (School of Economics and Social Sciences, Singapore Management University)

Abstract

The purpose of this paper is to develop a simple model of an economy in which growth is driven by a combination of exogenous technical change in agriculture as well as by a rising world demand for labor-intensive manufactured exports. We explore the relative roles of agricultural innovation and rising export demand in a model with two traded industrial goods and a non-traded agricultural good, food. When the non-traded sector uses a specific factor, we show that technical change in agriculture may be the key to sustained factor accumulation in industry, in particular driving intersectoral labor migration. A key assumption is a less than unitary price elasticity of demand for food. Our results could form a crucial link in capturing the story of labor-abundant economies which experienced structural transformation and growth through labor-intensive manufactured exports, without prior technology breakthroughs in industry. They contribute to explaining the massive growth in factor accumulation which shows up in some growth accounting studies : they may also imply that some of the contribution of “technical progress” is mistakenly attributed solely to factor accumulation.

Suggested Citation

  • Brishti Guha, 2005. "Green Revolutions and Miracle Economies : Agricultural Innovation, Trade and Growth," Working Papers 20-2005, Singapore Management University, School of Economics.
  • Handle: RePEc:siu:wpaper:20-2005
    as

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    File URL: https://mercury.smu.edu.sg/rsrchpubupload/5669/greenrev.pdf
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    References listed on IDEAS

    as
    1. Pasquale M. Sgro & Jean-Jacques Nowak & Mondher Sahli, 2004. "Tourism, Trade and Domestic Welfare," Working Papers 2004.24, Fondazione Eni Enrico Mattei.
    2. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    3. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Brishti Guha, 2005. "Female labour force participation and labour saving gadgets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(4), pages 483-495.
    6. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
    7. Jean-Jacques Nowak & Mondher Sahli & Pasquale M. Sgro, 2003. "Tourism, Trade And Domestic Welfare," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 245-258, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Structural change; agricultural productivity; labor migration; terms of trade.;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • F1 - International Economics - - Trade

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