Structural Transformation and Economic Growth Flashcards
What is the role of agriculture in early stages of economic development?
It provides income, food security, export earnings, and capital formation.
How does industrialization contribute to economic diversification?
By reducing reliance on agriculture and introducing manufacturing and services.
Define the relationship between agriculture and industrialization in economic development.
Agriculture provides resources for industrial growth, while industrialization enhances demand for agricultural products and supports technological advancements.
Why is agricultural productivity crucial for industrialization?
Higher productivity ensures food security and surplus labor for the industrial sector.
List two challenges agriculture faces in contributing to long-term growth.
Low productivity and limited value-added activities.
What are two key drivers of productivity growth in industrialization?
Mechanization and technological advancements.
Which sector typically drives higher value-added exports: agriculture or industry?
Industry.
How does industrialization promote urbanization?
By creating job opportunities in cities and attracting rural workers.
Explain one interaction between agriculture and industrialization that can create tension.
Industrialization may draw labor and resources away from agriculture, causing shortages in rural areas.
Why is policy coordination important in managing the agriculture-industry relationship?
To ensure balanced growth, prevent resource imbalances, and support both sectors through infrastructure and technology investments.
What role does agriculture play in foreign exchange earnings?
Agricultural exports contribute significantly to foreign exchange in developing economies.
How can technology bridge the gap between agriculture and industrialization?
By improving agricultural productivity and creating synergies with industrial sectors reliant on raw materials.
What is one long-term benefit of capital formation in agriculture?
It supports investments in industrial infrastructure.
How does industrialization address poverty reduction?
By creating large-scale employment opportunities, especially in urban areas.
What is a common vulnerability of economies heavily reliant on agriculture?
Susceptibility to shocks like droughts or commodity price fluctuations.
