Download PDF by Dr. Thorsten Wichmann (auth.): Agricultural Technical Progress and the Development of a
By Dr. Thorsten Wichmann (auth.)
A two-sector version of a constructing kingdom which include agriculture and is gifted. progress and structural switch are mentioned in versions with exogenous in addition to endogenous technical growth, algebraically and by way of numerical simulations. effects from bearing in mind peculiarities of foodstuff creation and intake are analyzed. those comprise know-how adoption in agriculture, Engel's legislation and a courting among the extent of food and productivity.
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Extra resources for Agricultural Technical Progress and the Development of a Dual Economy
HelJeiner. 28). Cf. also World Bank (I 982). 28 2. Economic Development, Endogenous Growth, and Agriculture discuss determinants of the economy's growth rate as well as the prerequisites for viability (growing real wages). The migration decision is looked at more closely by Harris and Todaro (1970). In their model industrial firms pay wages above the market clearing level which leads to urban unemployment. In the rural agricultural sector the wage adjusts to clear the labor market. Workers migrate to urban areas since they equalize the agricultural wage with the expected industrial wage, that is, the higher wage rate in the urban area times the probability of actually finding employment there.
Discusses an Indian study showing that over 65% of rural Indian farm operator households received wage or salary income, primarily because of the small size of Indian farms. 5. This excludes the existence oflandlords and thereby simplifies the analysis. 6. Widgets could be anything which is produced primarily with labor and capital. Separation of traditional and advanced sector is not that easy in realiry. Agriculture could also use capiral, while there might be manufacturing production almost without capiral.
Expanding agricultural production through technological change and trade creates important demands for the outputs of other sectors, notably fertilizer, transportation, commercial services, and construction. At the same time, agricultural households are often the basic market for a wide range of consumer goods that loom large in the early stages of industrial development - textiles and clothing, processed foods, kerosene and vegetable oils, aluminum holloware, radios, bicycles, and construction material for home improvements.
Agricultural Technical Progress and the Development of a Dual Economy by Dr. Thorsten Wichmann (auth.)