Agriculture

Question 1

Huge gaps in agricultural productivity between developed and developing countries

Answer 1

Gollin et al (2014)

Question 2

Rational optimising peasants, in line with neoclassical theory, sophisticated entrepreneurs

Answer 2

Schultz (1964)

Question 3

Government failure in agriculture. Overvalued exchange rate, low price paid by marketing boards, high price paid by farmers for manufactured goods

Answer 3

Bates (1981)

Question 4

The collectivisation of agriculture, confiscation of surplus by ‘‘price scissors’. Goods sold at higher prices to industrial workers and exported

Answer 4

Stalin 1928-1940. Led to famine and 6500 riots in 1930

Question 5

China, Gradual and experimental reform

Answer 5

49 million workers relocated out of agricultural sector

Question 6

Moving surplus labour out of low productivity, low wage agricultural sector into the modern sector to promote growth

Answer 6

Lewis (1954)

Question 7

agriculture is important for economic growth in the sense that it guarantees subsistence for society without which growth is not possible in the first place.

Answer 7

Schultz (1953

Question 8

importance of the agricultural sector declines with economic growth. In this view agriculture’s role in economic development is to supply cheap food and low wage labour to the modern sector.

Answer 8

Kuznets (1966)

Question 9

Improves on Lewis model by directly accounting for agriculture. providing raw materials to non-agricultural production or demand inputs for the modern sector. • On the consumption side, a higher productivity in agriculture can increase the income of the rural population, thereby creating demand for domestically produced industrial output. • Such linkage effects can increase employment opportunities in the rural non-farm sector, thereby generating rural income.

Answer 9

Johnston and Mellor (1961)

Question 10

because of production and consumption linkages, a country’s development strategy should be agriculture-driven rather than export-driven and increased agricultural productivity would be the iniator of industrialisation.

Answer 10

Singer (1979)

Question 11

the large share of agriculture in many developed economies in many developing economies does not immediately imply that overall growth has to be based on an ADLI type strategy

Answer 11

Gollin (2010)

Question 12

suggests that the relation between agricultural growth and overall economic growth depends on the openness of a country depends on international trade. Hand in hand with a small, closed economy but not a big one

Answer 12

Matsuyama (1992)

Question 13

suggested that ADLI would work best for low-income countries that are not yet export driven.

Answer 13

Adelman (1984)

Question 14

derives his conclusion from a two-sector model, explains that in an open economy, in which both agricultural and modern-sector goods can be traded, linkages between the two sectors become less important for overall growth.

Answer 14

Dercon (2009)

Question 15

used a panel of 65 developing countries over 1960-1985 to show a positive correlation between growth in agricultural GDP and its lagged values and non-agricultural GDP growth.
• Can be explained by “first-order” effects of agricultural growth on lower food prices, labour migration and capital flows from agriculture
• As well as “second-order” effects such as improved nutritional intake, which improves worker’s productivity

Answer 15

Timmer (2002)

Question 16

find that higher farm productivity reduces both absolute as well as relative poverty

Answer 16

Datt and Ravallion (1996, 1998)

Question 17

uses Granger causality tests to establish that agricultural value added per worker has a positive effect on GDP per capita in developing countries.

Answer 17

Tiffin and Irz (2006)