Abstract
AbstractThis paper presents a two‐sector growth model in which industrial accumulation is sensitive to the factor‐saving bias of technical change in agriculture. Agriculture features low factor substitutability and hidden unemployment and, in the baseline scenario, industrial growth is constrained by aggregate demand. Land‐saving innovations are then shown to raise rural employment, enlarge the domestic market for manufactures, and bolster industrial accumulation, in contrast to labor‐saving innovations. The baseline model and its extensions illuminate recent empirical studies which established that higher land yields boost industrial growth in developing countries, as well as accounts of the role of agricultural innovations in the industrialization of Japan, East Asia, and Latin America.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
