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Reversal of Fortune: Immiserizing Technical Change in Agriculture

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  • Julian M. Alston
  • Will J. Martin

Abstract

Several recent studies have reported the possibility of immiserizing technical change in agriculture. In these studies, the interaction of government commodity policy and technical change has been shown potentially to lead to a loss of national welfare, a negative rate of return to research. The purpose of this paper is to tie these recent results to the earlier results of Bhagwati and Johnson on immiserizing growth (technical change), and to offer a more general condition for describing the impacts of distortions on the benefits from technical change.

Suggested Citation

  • Julian M. Alston & Will J. Martin, 1995. "Reversal of Fortune: Immiserizing Technical Change in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 251-259.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:2:p:251-259.
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    File URL: http://hdl.handle.net/10.2307/1243535
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    Cited by:

    1. Johan F.M. Swinnen & Harry de Gorter, 1998. "Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 107-115.
    2. Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-32.
    3. Andrei Sobolevsky & GianCarlo Moschini & Harvey E. Lapan, 2002. "Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex," Center for Agricultural and Rural Development (CARD) Publications 02-wp319, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Simla Tokgoz, 2005. "EU Enlargement and Technology Transfer to New Member States," Center for Agricultural and Rural Development (CARD) Publications 05-wp414, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Coxhead, Ian A., 1997. "Induced innovation and land degradation in developing country agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-28.
    6. Tokgoz, Simla, 2004. "Can Eu Enlargement Lead To "Immiserizing Growth"? An Empirical Investigation," 2004 Annual meeting, August 1-4, Denver, CO 20100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Valenzuela, Ernesto & Ivanic, Maros & Ludena, Carlos E. & Hertel, Thomas W., 2005. "Agriculture Productivity Growth: Is the Current Trend on the Track to Poverty Reduction?," 2005 Annual meeting, July 24-27, Providence, RI 19152, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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