Hidden Bibliographic Details
| Other authors / contributors: | Pintea, Mihaela.
International Monetary Fund. Research Department.
International Monetary Fund. Strategy, Policy, and Review Department.
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| ISBN: | 9781475550566
1475550561
1484350057
9781484350058
9781484350331
1484350332
9781484350058
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| Notes: | "March 2015."
"Research Department and Strategy, Policy, and Review Department."
Includes bibliographical references (pages 21-22).
Online resource; title from pdf title page (IMF.org Web site, viewed May 5, 2015).
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| Summary: | The process of economic development is characterized by substantial reallocations of resources across sectors. In this paper, we construct a multi-sector model in which there are barriers to the movement of labor from low-productivity traditional agriculture to modern sectors. With the barrier in place, we show that improvements in productivity in modern sectors (including agriculture) or reductions in transportation costs may lead to a rise in agricultural employment and through terms-oftrade effects may harm subsistence farmers if the traditional subsistence sector is larger than a critical level. This suggests that policy advice based on the earlier literature needs to be revised. Reducing barriers to mobility (through reductions in the cost of skill acquisition and institutional changes) and improving the productivity of subsistence farmers needs to precede policies designed to increase the productivity of modern sectors or decrease transportation costs. --Abstract.
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| Other form: | Print Version: 9781484350058
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| Standard no.: | 10.5089/9781484350058.001
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