By Dr. Thorsten Wichmann (auth.)
A two-sector version of a constructing nation inclusive of agriculture and is gifted. development and structural swap are mentioned in versions with exogenous in addition to endogenous technical growth, algebraically and via numerical simulations. results from considering peculiarities of meals construction and intake are analyzed. those comprise expertise adoption in agriculture, Engel's legislations and a dating among the extent of meals and productivity.
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Additional info for Agricultural Technical Progress and the Development of a Dual Economy
3 Some Older Thoughts about Agriculture in Economic Development One of the main issues of development economics is the structural transformation of a traditional into a modern economy. Its emphasis is also one of the main differences between neoclassical growth theory and the theory of development. " (Lewis 1984, 1, italics added) Although "structural transformation" is a widely used term, it is not easy to define, as Chenery (1988, 50) notes. "In general it connotes the set of changes in economic and institutional structures necessary to continued growth of GNP.
Another possibility to increase productivity, improvement of human capital, has also been propagated by Schultz. For him, human capital are "attributes of acquired population quality. which are valuable and can be augmented byappropriate investment" (Schultz, 1981, 21, italics added). The stock of acquired 31. There exist different views in the development literature upon what drives the crtarion of new techniques, supply-push forces like research institutions or demand-pull forces (Rayntrand Ingmtnt, 1991; Thirtkand Ruttan, 1987).
While this might be the prevalent tendency, people do indeed work part-time as small-scale farm operators and as employee in some other kind of occupation. , 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.