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Agricultural distortions and structural change

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  • Grabowski, Richard

Abstract

Many developing countries have chosen to use a variety of policy instruments to transfer resources out of agriculture and to the manufacturing and, in some countries, the service sector. It will be argued in this paper that such policies slow structural change, create incentives for capital intensive production in non-agricultural sectors, and slow the process of technical innovation in agriculture. These arguments will be illustrated by examining the recent growth experience in India.

Suggested Citation

  • Grabowski, Richard, 2013. "Agricultural distortions and structural change," Journal of Asian Economics, Elsevier, vol. 24(C), pages 17-25.
    • Handle: RePEc:eee:asieco:v:24:y:2013:i:c:p:17-25
    DOI: 10.1016/j.asieco.2012.10.002
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    1. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
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    Cited by:

    1. Srinivasan, Sinduja V. & Saborío, Milagro & Morales Opazo, Cristian, 2022. "Agricultural transformation: trends in farm size, crop diversification and mechanization in Nicaragua and Peru," FAO Agricultural Development Economics Technical Study 324703, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    2. Pi, Jiancai & Zhang, Pengqing, 2018. "Structural change and wage inequality," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 699-707.
    3. Xiangdong Guo & Pei Lung & Jianli Sui & Ruiping Zhang & Chao Wang, 2021. "Agricultural Support Policies and China’s Cyclical Evolutionary Path of Agricultural Economic Growth," Sustainability, MDPI, vol. 13(11), pages 1-28, May.

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    More about this item

    Keywords

    Structural change; Agriculture; Policy distortions;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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