Journal ArticleDOI
Economic Growth and Structural Change: The Case of India
TLDR
In this paper , the authors examined a two-sector development model with labor market frictions and showed that the model exhibits an unbalanced decline in the employment and income shares of the agricultural sector.Abstract:
AbstractStructural transformation of the Indian economy has two distinctive features: (i) the employment share of the agricultural sector has not declined much, although its income share has been rapidly decreasing with economic growth and; (ii) the service sector started expanding before the income share of the manufacturing sector has not increased enough. In this chapter, we mainly focus on the first feature by examining a two-sector development model with labor market frictions. Our model exhibits an unbalanced decline in the employment and income shares of the agricultural sector. read more
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Journal ArticleDOI
Agricultural Productivity, Comparative Advantage and Economic Growth
TL;DR: In this article, the role of agricultural productivity in economic development is addressed in a two-sector model of endogenous growth in which preferences are nonhomothetic and the income elasticity of demand for the agricultural good is less than unitary.
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Growing Like China
TL;DR: In this article, a growth model that is consistent with salient features of the recent Chinese growth experience is presented, including high output growth, sustained returns on capital investment, extensive reallocation within the manufacturing sector, falling labor share and accumulation of a large foreign surplus.
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Structural change in a multi-sector model of growth
TL;DR: In this article, the authors study a multisector model of growth with differences in TFP growth rates across sectors and derive sufficient conditions for the coexistence of structural change, characterized by sectoral labor reallocation and balanced aggregate growth.
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Beyond balanced growth
TL;DR: In this article, a simple model consistent with both the Kaldor facts and the dynamics of sectoral labour reallocation is presented, which is consistent with one of the most striking regularities of the growth process.
Journal ArticleDOI
Agriculture and aggregate productivity: A quantitative cross-country analysis ☆
TL;DR: In this article, a decomposition of aggregate labor productivity based on internationally comparable data reveals that a high share of employment and low labor productivity in agriculture are mainly responsible for low aggregate productivity in poor countries.