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Agricultural Diversity, Structural Change, and Long-Run Development: Evidence from the United States

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  • Martin Fiszbein

Abstract

This paper examines the role of agricultural diversity in the process of development. Using data from US counties and exploiting climate-induced variation in agricultural production patterns, I show that mid-nineteenth-century agricultural diversity had positive long-run effects on population density and income per capita. During the Second Industrial Revolution, agricultural diversity fostered industrialization, diversification within manufacturing, patent activity, formation of new labor skills, and the expansion of knowledge- and skill-intensive industries. These results are consistent with the hypothesis that diversity spurs the acquisition of new ideas and new skills because of the presence of cross-sector spillovers and complementarities.

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  • Martin Fiszbein, 2022. "Agricultural Diversity, Structural Change, and Long-Run Development: Evidence from the United States," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(2), pages 1-43, April.
    • Handle: RePEc:aea:aejmac:v:14:y:2022:i:2:p:1-43
    DOI: 10.1257/mac.20190285
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    More about this item

    JEL classification:

    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • N91 - Economic History - - Regional and Urban History - - - U.S.; Canada: Pre-1913
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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