AerMacchi MC-200 Bis

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Indeed, virtually the entire growth experience of modern developed countries has been spent on the convergent path of sectoral labor productivity. This is in sharp contrast to currently developing countries, which are mostly at income levels per capita where sectoral labor productivity is diverging. Divergent Paths There are two ways to think about individual country experiences in the context of the regular patterns of the structural transformation. First, all countries might be “unique,” so that only the aggregate of 26 A WORLD WITHOUT AGRICULTURE countries would actually display a pattern of transformation over time or across incomes.

For Asian countries, the linear term in lnGDPpc is positive, and the quadratic term is negative—just the opposite of the non-Asian sample, signaling that Asian economies tend to employ disproportionately more farm workers in the early stages of development. More critically, the coefficient on the agricultural terms of trade is positive and statistically significant for the Asian sample, whereas it is negative and statistically significant for the non-Asian sample. In this, the Asian pattern contrasts with the overall sample as well.

22 Direct Contribution to Economic Growth via Lewis Linkages. The “Lewis linkages” between agriculture and economic growth provide the nonagricultural sector with labor and capital freed up by higher productivity in the agricultural sector. 24 If labor markets worked perfectly, Johnston-Mellor Environment “Agriculture as a Contributor to Growth”—establish market links with industry; technology and incentives to create a healthy agricultural sector; improve factor markets to mobilize rural resources “Jump Strategy” “Getting Agriculture Moving”—institutional change; new technology; structure of markets and incentives; significant investments in rural infrastructure Policy Settings: Mosher Environment SOURCE: Timmer 1988, 295.

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