Market Integration and Structural Transformation in a Poor Rural Economy

Market Integration and Structural Transformation in a Poor Rural Economy

By developing a simple theoretical model of the impact of market integration on sectoral output and employment in a poor rural setting, this paper demonstrates that trade can induce asymmetric growth. Under certain, plausible, assumptions, the non-farm sector will grow much faster than the agricultural sector when markets become integrated. Promoting market integration may thus be an effective way of encouraging diversification beyond agriculture and catalysing structural change in poor rural economies.

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Bibliographic Details
Main Authors: Soderbom, Mans, Rijkers, Bob
Language:English
Published: 2009-03-01
Subjects:ABSOLUTE ADVANTAGE, ACCESS TO MARKETS, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL SECTOR, AGRICULTURE, AVERAGE PRODUCTIVITY, COMPARATIVE ADVANTAGE, CONSTANT RETURNS TO SCALE, CONSUMER SPENDING, CONSUMPTION EXPENDITURE, DIVERSIFICATION, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPLOYMENT IN AGRICULTURE, EMPLOYMENT OPPORTUNITIES, FARM EMPLOYMENT, FARM OUTPUT, FARM PRODUCTION, FARM PRODUCTS, FARM SECTOR, FOOD CONSUMPTION, FOOD EXPENDITURE, FOOD GOODS, FOOD OUTPUT, FOOD PRODUCT, FOOD PRODUCTION, FOOD PRODUCTS, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDIFFERENCE CURVES, INEQUALITY, MACROECONOMICS, MALNUTRITION, NUTRITION, NUTRITION LEVELS, POLITICAL ECONOMY, POOR, POOR RURAL AREAS, POVERTY REDUCTION, PRODUCTIVITY, RURAL, RURAL ECONOMY, RURAL TRANSFORMATION, STRUCTURAL CHANGE, STRUCTURAL TRANSFORMATION, SUBSISTENCE, TOTAL OUTPUT, UNEMPLOYMENT, UTILITY FUNCTION, UTILITY FUNCTIONS, UTILITY MAXIMIZATION,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090309075416
https://hdl.handle.net/10986/4052
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http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090309075416
https://hdl.handle.net/10986/4052

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