IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v24y2013icp17-25.html
   My bibliography  Save this article

Agricultural distortions and structural change

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007812000887
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.asieco.2012.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Alston, Julian M. & Pardey, Philip G. & Roseboom, Johannes, 1998. "Financing agricultural research: International investment patterns and policy perspectives," World Development, Elsevier, vol. 26(6), pages 1057-1071, June.
    3. 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.
    4. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    5. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611.
    6. Gulati, Ashok & Pursell, Garry, 2008. "Distortions to Agricultural Incentives in India and Other South Asia," Agricultural Distortions Working Paper Series 48634, World Bank.
    7. Shenggen Fan & Ashok Gulati & Sukhadeo Thorat, 2008. "Investment, subsidies, and pro‐poor growth in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 163-170, September.
    8. Benjamin N. Dennis & Talan B. İşcan, 2011. "Agricultural Distortions, Structural Change, and Economic Growth: A Cross-Country Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 881-902.
    9. Gordon, Roger & Li, Wei, 2009. "Tax structures in developing countries: Many puzzles and a possible explanation," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 855-866, August.
    10. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    11. Headey, Derek & Bezemer, Dirk & Hazell, Peter B., 2008. "Agricultural exit problems: Causes and consequences," IFPRI discussion papers 802, International Food Policy Research Institute (IFPRI).
    12. Foster, Andrew D. & Rosenzweig, Mark R., 2010. "Is There Surplus Labor in Rural India?," Center Discussion Papers 95273, Yale University, Economic Growth Center.
    13. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper Series 48483, World Bank.
    14. Shapiro, Helen & Taylor, Lance, 1990. "The state and industrial strategy," World Development, Elsevier, vol. 18(6), pages 861-878, June.
    15. Bramall, Chris, 2000. "Sources of Chinese Economic Growth, 1978-1996," OUP Catalogue, Oxford University Press, number 9780198296973.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    2. Kym Anderson & Maros Ivanic & William J. Martin, 2014. "Food Price Spikes, Price Insulation, and Poverty," NBER Chapters, in: The Economics of Food Price Volatility, pages 311-339, National Bureau of Economic Research, Inc.
    3. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    4. Kamel Louhichi & Aymeric Ricome & Sergio Gomez y Paloma, 2022. "Impacts of agricultural taxation in Sub‐Saharan Africa: Insights from agricultural produce cess in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 671-686, September.
    5. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    6. Alireza Shakibaei & Mohammad Reza Ahmadinejad, 2016. "Investigating the Break and the Structural Changes of Tax in United States," Modern Applied Science, Canadian Center of Science and Education, vol. 10(8), pages 152-152, August.
    7. Yuan Li & Bo Xiong & John C Beghin, 2017. "The Political Economy of Food Standard Determination: International Evidence from Maximum Residue Limits," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 14, pages 239-267, World Scientific Publishing Co. Pte. Ltd..
    8. Jayatilleke S. Bandara, 2013. "What is Driving India’s Food Inflation? A Survey of Recent Evidence," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 127-156, March.
    9. Derek D. Headey, 2016. "The evolution of global farming land: facts and interpretations," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 185-196, November.
    10. Anderson, Kym & Nelgen, Signe, 2012. "Trade Barrier Volatility and Agricultural Price Stabilization," World Development, Elsevier, vol. 40(1), pages 36-48.
    11. Giovanni Maggi & Monika Mrázová & J. Peter Neary, 2022. "Choked By Red Tape? The Political Economy Of Wasteful Trade Barriers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 161-188, February.
    12. Roger Gordon & Wei Li, 2007. "Puzzling Tax Structures in Devloping Countries: A Comparison of Two Alternative Explanations," NBER Chapters, in: Fiscal Policy and Management in East Asia, pages 9-35, National Bureau of Economic Research, Inc.
    13. Anderson, Kym & Strutt, Anna, 2014. "Food security policy options for China: Lessons from other countries," Food Policy, Elsevier, vol. 49(P1), pages 50-58.
    14. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper Series 50299, World Bank.
    15. Schwerhoff, Gregor & Wehkamp, Johanna, 2018. "Export tariffs combined with public investments as a forest conservation policy instrument," Forest Policy and Economics, Elsevier, vol. 95(C), pages 69-84.
    16. Wang, Yong, 2013. "Fiscal decentralization, endogenous policies, and foreign direct investment: Theory and evidence from China and India," Journal of Development Economics, Elsevier, vol. 103(C), pages 107-123.
    17. Surya Bhushan, 2021. "Labour Productivity Dynamics in Indian Agriculture: 2000–2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 371-388, June.
    18. JOHNSON, Deepak & KUROSAKI, Takashi, 2023. "Price Support and Farm Incomes : Comparative Study of Rice Growing Regions in Southern India and Mekong-Delta Vietnam," Discussion Paper Series 741, Institute of Economic Research, Hitotsubashi University.
    19. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    20. Knud Munk, 2008. "Tax-tariff reform with costs of tax administration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(6), pages 647-667, December.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:24:y:2013:i:c:p:17-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.