| Description |
1 online resource (30 pages) : illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/15/91 |
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IMF working paper ; WP/15/91.
|
| Contents |
Cover Page; Title Page; Copyright Page; Contents; FIGURES; TABLES; 1. Introduction; 2. The Model; 2.1 Firms; 2.2 Households; 2.3 Market Clearing; 2.4 Equilibrium; 1. Increase in the Number of Skilled Workers; 2.5 Productivity Shocks; 2.5.1 In the Manufacturing Sector; 2. Increase in Manufacturing Productivity; 2.5.2 In Modern Agriculture; 3. Increase in Productivity of Modern Agriculture; 2.5.3 In Subsistence Agriculture; 2.6 Transportation Costs of Intermediate Inputs; 4. Decrease in the Cost of Transportation; 3. Quantitative Analysis; 1. Base Parameters; 2. Base Equilibria An = Am = 2.8 |
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3. Base Equilibria An = Am = 4.53.1 Changes in Productivity and Transportation Costs; 4. Productivity Shocks; 5. Productivity Shocks (An = Am = 2.8); 6. Productivity Stocks (An = Am = 4.5); 4. Conclusion; REFERENCES; APPENDIX; Footnotes |
| Summary |
The process of economic development is characterized by substantial reallocations of resources across sectors. In this paper, we construct a multi-sector model in which there are barriers to the movement of labor from low-productivity traditional agriculture to modern sectors. With the barrier in place, we show that improvements in productivity in modern sectors (including agriculture) or reductions in transportation costs may lead to a rise in agricultural employment and through terms-oftrade effects may harm subsistence farmers if the traditional subsistence sector is larger than a critical level. This suggests that policy advice based on the earlier literature needs to be revised. Reducing barriers to mobility (through reductions in the cost of skill acquisition and institutional changes) and improving the productivity of subsistence farmers needs to precede policies designed to increase the productivity of modern sectors or decrease transportation costs. --Abstract |
| Notes |
"March 2015." |
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"Research Department and Strategy, Policy, and Review Department." |
| Bibliography |
Includes bibliographical references (pages 21-22) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed May 5, 2015) |
| Subject |
Labor productivity -- Econometric models
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Labor mobility -- Econometric models
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Transportation -- Costs -- Econometric models
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Subsistence farming -- Econometric models
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Structural adjustment (Economic policy) -- Econometric models
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Economic development -- Econometric models
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Economic development -- Econometric models
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Labor mobility -- Econometric models
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Labor productivity -- Econometric models
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Structural adjustment (Economic policy) -- Econometric models
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| Form |
Electronic book
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| Author |
Pintea, Mihaela.
|
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International Monetary Fund. Research Department.
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International Monetary Fund. Strategy, Policy, and Review Department.
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| ISBN |
9781475550566 |
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1475550561 |
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1484350057 |
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9781484350058 |
|
1484350332 |
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9781484350331 |
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