On Why Agriculture Declines with Economic Growth

When economic growth is characterised by a slow rise in the demand for food and rapid growth in farm relative to non-farm productivity, it is understandable that agriculture in a closed economy declines in relative terms as that economy develops. But why should agriculture decline in virtually all open growing economies as well, including those able to retain a comparative advantage in agricultural products? A key part of the answer is that the demand for non-tradable goods . tends to be inc.o me elastic, so resources are diverted to their production even m open economies.


Issue Date:
1987-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/172042
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 01, Issue 3
Page range:
195-207
Total Pages:
14




 Record created 2017-04-01, last modified 2017-08-27

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