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Development priorities: the relative benefits of agricultural growth

Monteforte, Fabio, Satchi, Mathan, Temple, Jonathan R.W. (2020) Development priorities: the relative benefits of agricultural growth. Oxford Economic Papers, . Article Number gpaa038. ISSN 0030-7653. E-ISSN 1464-3812. (doi:10.1093/oep/gpaa038) (KAR id:85650)


Should agriculture or non-agriculture be a priority for development? We revisit this question using a two-sector, three-factor dynamic model with an asymptotic balanced growth path. The model allows a forward-looking assessment of development priorities based on lifetime welfare. A comparison of sector-specific productivity gains indicates that gains in non-agriculture are often more valuable, even when agriculture is initially the largest sector in terms of employment. We discuss the robustness of this result, and how international capital mobility, capital intensity, demographics, the discount rate, and taxes on profits influence investment and structural transformation.

Item Type: Article
DOI/Identification number: 10.1093/oep/gpaa038
Uncontrolled keywords: development prioritites; agriculture; non-agriculture
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Mathan Satchithananthan
Date Deposited: 25 Jan 2021 15:33 UTC
Last Modified: 07 Dec 2022 00:00 UTC
Resource URI: (The current URI for this page, for reference purposes)

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