کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5058267 | 1476621 | 2016 | 4 صفحه PDF | دانلود رایگان |
- Capital accumulation is introduced into a model with rural-urban interdependence.
- The interdependence causes a poverty trap, stagnation, and unbounded growth.
- Capital accumulation and structural change are realized simultaneously.
- The timing of structural change is endogenously determined.
This paper presents a model of development that explicitly incorporates the interaction between rural agriculture and urban non-agriculture explored by Murata (2002). The increase of capital stock leads to capital intensive agriculture and the reallocation of labor from agriculture to non-agriculture. People who migrate to urban areas create new intermediate goods and enhance non-agricultural productivity, which, in turn, causes capital accumulation and capital intensive agriculture. This mechanism causes a poverty trap, stagnation, and unbounded growth.
Journal: Economics Letters - Volume 142, May 2016, Pages 83-86