scholarly journals Capital Accumulation and Structural Transformation*

2020 ◽  
Vol 135 (2) ◽  
pp. 1037-1094 ◽  
Author(s):  
Paula Bustos ◽  
Gabriel Garber ◽  
Jacopo Ponticelli
Keyword(s):  
Structural Transformation ◽  
Productivity Growth ◽  
Rural Areas ◽  
Capital Accumulation ◽  
Industrial Development ◽  
Financial Integration ◽  
Agricultural Productivity ◽  
Genetically Engineered ◽  
Capital Outflows ◽  
Service Sectors

Abstract Several scholars argue that high agricultural productivity can retard industrial development because it draws resources toward the comparative advantage sector, agriculture. However, agricultural productivity growth can increase savings and the supply of capital, generating an expansion of the capital-intensive sector, manufacturing. We highlight this mechanism in a simple model and test its predictions in the context of a large and exogenous increase in agricultural productivity due to the adoption of genetically engineered soy in Brazil. We find that agricultural productivity growth generated an increase in savings, but these were not reinvested locally. Instead, there were capital outflows from rural areas. Capital reallocated toward urban regions, where it was invested in the industrial and service sectors. The degree of financial integration affected the speed of structural transformation. Regions that were more financially integrated with soy-producing areas through bank branch networks experienced faster growth in nonagricultural lending. Within these regions, firms with preexisting relationships with banks receiving funds from the soy area experienced faster growth in borrowing and employment.

scholarly journals Agricultural Productivity and Structural Transformation: Evidence from Brazil

2016 ◽  
Vol 106 (6) ◽  
pp. 1320-1365 ◽  
Author(s):  
Paula Bustos ◽  
Bruno Caprettini ◽  
Jacopo Ponticelli
Keyword(s):  
Structural Transformation ◽  
Technical Change ◽  
Industrial Development ◽  
Agricultural Productivity ◽  
Empirical Work ◽  
Genetically Engineered ◽  
Industrial Growth ◽  
Agricultural Technologies ◽  
Heterogeneous Effects ◽  
Soy Production

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor-bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor-saving and led to industrial growth, as predicted by the model. (JEL J43, O13, O14, O33, Q15, Q16)

Unpacking the Agricultural Black Box: The Rise and Fall of American Farm Productivity Growth

2021 ◽  
Vol 81 (1) ◽  
pp. 114-155
Author(s):  
Philip G. Pardey ◽  
Julian M. Alston
Keyword(s):  
Structural Transformation ◽  
Productivity Growth ◽  
Technological Progress ◽  
Agricultural Productivity ◽  
Black Box ◽  
Farm Productivity ◽  
Time Path ◽  
Knowledge Stocks ◽  
Industrial Productivity ◽  
American Agriculture

Has the golden age of U.S. agricultural productivity growth ended? We analyze the detailed patterns of productivity growth spanning a century of profound changes in American agriculture. We document a substantial slowing of U.S. farm productivity growth, following a late mid-century surge—20 years after the surge and slowdown in U.S. industrial productivity growth. We posit and empirically probe three related explanations for this farm productivity surge-slowdown: the time path of agricultural R&D-driven knowledge stocks; a big wave of technological progress associated with great clusters of inventions; and dynamic aspects of the structural transformation of agriculture, largely completed by 1980.

scholarly journals Rural Structural Transformation and Agricultural Productivity in Nigeria

2022 ◽  
Vol 8 (2) ◽  
pp. 119-138
Author(s):  
Abidemi Abiola ◽  
Rasak A. Adefabi
Keyword(s):  
Structural Transformation ◽  
Rural Areas ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Agricultural Productivity ◽  
Negative Relationship ◽  
Structural Var ◽  
Urban Migration ◽  
Agricultural Policies ◽  
The Impact

Rural structural transformation is best defined as structural changes in the rural areas occasioned by government policies and programmes with the intention of altering the contributions of major sector of the economy for the enhancement of agricultural sector. The study aimed at investigating the impact of rural structural transformation on agricultural productivity in Nigeria. The methodology adopted for the study was Structural Autoregression (SVAR). Six variables of expenditure on education (EXPE), expenditure on health (EXPH), expenditure on electricity (EXPEL), expenditure on telecommunication (EXPTC), expenditure on roads and construction (EXPRC) and expenditure on agriculture (EXPA). Of the six explanatory variables only expenditure on agriculture was found to be negatively related to agricultural productivity, while the others were positively related to it. Several reasons of which of official corruption by the handlers of agricultural funds could possibly be one of the reasons for the negative relationship between expenditure on agriculture and agricultural productivity. Among many other recommendations was the need to provide clinics and health centres to the rural areas, provision of good and accessible roads, provision of electricity and internet facilities. This will act as motivating factors in curbing rural-urban migration, and by extension improve the lots of agricultural productivity in Nigeria. Keywords: rural, structural transformation, agricultural productivity, agricultural policies and structural VAR

scholarly journals SEKTOR PERTANIAN DALAM DINAMIKA TRANSFORMASI STRUKTURAL DI INDONESIA

2021 ◽  
Vol 18 (1) ◽  
pp. 48
Author(s):  
Axellina Muara Setyanti
Keyword(s):  
Structural Transformation ◽  
Rural Areas ◽  
Work Experience ◽  
Service Sector ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Added Value ◽  
Economic Base ◽  
Probit Regression ◽  
Service Sectors

<p><em>Indonesia is a country that has relied on the agricultural sector as an economic base for decades. On the other hand, the more developed an economy is, the higher the reserves in the service sector. Despite this declining GDP, agriculture is still very important to the Indonesian economy, even though it is 14 percent of GDP. This study analyzes structural transformation through shift-share analysis. It looks at the tendency of labor to enter the agricultural, manufacturing and service sectors using probit regression on Sakernas microdata. This study found that the service sector continues to grow and outperforms the agricultural sector both in terms of added value and employment. The results of the shift-share show shrinkage in the productivity of agricultural sector while the manufacturing and service sectors are growing. This fact proves a change in economic structure. The characteristics of the agricultural sector labor force have a higher tendency for male workers, live in rural areas, are relatively older and have fewer family members, are less educated, do not have training certification, and have no previous work experience.</em></p><p class="MsoNormal"><em><span style="font-family: 'Times New Roman';">service sector, agricultural sector, manufacturing sector, probit, structural transformation</span></em></p>

scholarly journals Structural transformation and productivity in Latin America

2015 ◽  
Vol 15 (2) ◽  
Author(s):  
Pedro Cavalcanti Ferreira ◽  
Leonardo Fonseca da Silva
Keyword(s):  
Latin America ◽  
Structural Transformation ◽  
Productivity Growth ◽  
Equilibrium Model ◽  
Poor Performance ◽  
Services Sector ◽  
The Poor ◽  
Agriculture Industry ◽  
Key Factor ◽  
Modern Services

AbstractThis article examines the effects of sectorial shifts and structural transformation on the recent productivity path of Latin America. We use a four-sector (agriculture, industry, modern services and traditional services) general equilibrium model calibrated to the main economies in the region. The model very closely replicates labor reallocations across sectors and the growth of aggregate labor productivity from 1950 to 2005. Structural transformation explains a sizeable portion of the region’s convergence in the first decades. In most cases, the poor performance of the traditional services sector is the main cause of the slowdown in productivity growth observed in the region after the mid-1970s and is a key factor in explaining the divergence during this period.

Financial Integration, Savings Gluts, and Asset Price Booms

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Felix Zhiyu Feng ◽  
Will Jianyu Lu ◽  
Caroline H. Zhu
Keyword(s):  
Financial Integration ◽  
Asset Price ◽  
Substitution Effect ◽  
Wealth Effect ◽  
Precautionary Savings ◽  
Domestic Capital ◽  
Borrowing Constraint ◽  
Savings Rate ◽  
Financing Costs ◽  
Capital Outflows

AbstractCapital outflows after financial integration can lead to simultaneous increases in the national savings rate and asset prices of an economy with substantial financing costs. Under autarky, firms invest in risky capital while facing a borrowing constraint that creates a need for precautionary savings. Financial integration provides firms with access to foreign risk-free assets and results in two effects: a substitution effect, whereby firms divert some investments to foreign assets and cause capital outflows; and a wealth effect, whereby they grow richer in equilibrium and thus demand more domestic capital. Savings gluts and asset price booms occur when the wealth effect dominates.

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