Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
Lectured by Imrohoroglu...
-Higher agricultural productivity leads to faster industrial growth and thus to faster overall growth.
-Higher agricultural productivity enables the economy to allocate a larger fraction of its labor force to the knowledge-producing sector, which is manufacturing.
-The striking result in this case is that the implications of the closed and the open economies are very different.
-Higher agricultural productivity, in the presence of international trade, can lead to delayed industrialization or even to de-industrialization, rather than being the source of rapid industrialization as in the closed economy.
-specialization according to comparative advantage may have negative long-run consequences in the presence of sector-specific externalities.
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