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-...

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Bibliographic Details
Main Authors: Soderbom, Mans, Rijkers, Bob
Format: Policy Research Working Paper
Language:English
Published: 2012
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
http://hdl.handle.net/10986/4052
Description
Summary: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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