Download Agricultural Technical Progress and the Development of a by Dr. Thorsten Wichmann (auth.) PDF

By Dr. Thorsten Wichmann (auth.)

A two-sector version of a constructing kingdom inclusive of agriculture and is gifted. development and structural switch are mentioned in variations with exogenous in addition to endogenous technical growth, algebraically and by way of numerical simulations. outcomes from bearing in mind peculiarities of nutrients creation and intake are analyzed. those comprise expertise adoption in agriculture, Engel's legislations and a dating among the extent of foodstuff and productivity.

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By Dr. Thorsten Wichmann (auth.)

A two-sector version of a constructing kingdom inclusive of agriculture and is gifted. development and structural switch are mentioned in variations with exogenous in addition to endogenous technical growth, algebraically and by way of numerical simulations. outcomes from bearing in mind peculiarities of nutrients creation and intake are analyzed. those comprise expertise adoption in agriculture, Engel's legislations and a dating among the extent of foodstuff and productivity.

Show description

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Extra info for Agricultural Technical Progress and the Development of a Dual Economy

Sample text

30. Women do most of the work in subsistence agriculture, up to 80%. Cf. Todaro (1992, 269). 34 2. Economic Development, Endogenous Growth, and Agriculture Since everyone can use the same seed design, there exist large externalities in the development of new seed varieties. Indeed, there is considerable evidence of large differences between private and social returns to agricultural research. This has first been shown by Griliches'{l958) seminal work on hybrid corn in the United States, its research cost and social returns.

But, as Dixit (1970, 229) notes, "asymptotic propenies of the dual economy model are not very interesting," since the dual character of an economy vanishes in the long-run. Therefore the transitional dynamics towards the steady-state are derived in a second step by numerical methods. This allows us to discuss the process of economic development depicted by the model's transitional dynamics. These might last for a rather long time and 1. 3 we have mentioned two funher stylized facts characterizing devdopment, namdya decrease in the share of agriculture in national product and an increase in savings as fraction of national income.

Due to a traditional organization of this sector labor is abundant, and hidden unemployment exists. Since labor is in surplus supply, its marginal product in agriculture is zero. Therefore a withdrawal of labor does not decrease agricultural output. Development in this economy consists of reallocating surplus agricultural labor from agriculture into industry where formerly agricultural workers become productive members of the industrial labor force. At first they are employed at the same subsistence wage as in agriculture.

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