Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/221293 
Year of Publication: 
1990
Series/Report no.: 
Discussion Paper No. 934
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
The role of agricultural productivity in economic development is addressed in a two-sector model of endogenous growth in which a) preferences are non-homothetic and income elasticity of demand for the agricultural good is less than unitary, and b) the engine of growth is learning-by-doing in the manufacturing sector. For the closed economy case, the model predicts a positive link between agricultural productivity and economic growth, while, for the small open economy case, it predicts a negative link. This suggests that the openness of an economy should be an important factor when planning development strategy and predicting growth performance.
Subjects: 
Agricultural Revolution
Dutch Disease
Endogenous Growth
Engel's Law
Industrail Revolution
Learning-by-doing
Regional Divergence
JEL: 
F43
O11
O41
Document Type: 
Working Paper

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