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...
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2009/03/01
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Documento de trabalho sobre pesquisa de políticas
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WPS4856
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1
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1
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2010/07/01
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Disclosed
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Market integration and structural transformation in a poor rural economy
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Poverty Reduction & Economic Management
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