On Why Agriculture Declines with Economic Growth

Abstract

Abstract 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 income elastic, so resources are diverted to their production even in open economies.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 32 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.