Agricultural Productivity and Industrialization

Abstract

The article develops a series of models to analyze the role of agriculture in the development process.  The final 3-sector model argues that the agricultural growth can lead to the development of a potential comparative advantage in  manufacturing.  However, the state's need for revenue often creates barriers to economic reform.  Agricultural productivity can provide the basis for this reform.  The experiences of Indonesia and South Korea are used to illustrate these ideas.

Keywords:

• agricultural productivity
• taxation
• industrialization
• technical change
• South Korea
• Indonesia