Tuesday 13
D6 - Environment V
Chair: Marion Davin
› 14:00 - 14:25 (25min)
› Room 005 - E. Jaques-Dalcroze
Land Resources, Industrialization and the Feedback between Industry and Agriculture
Arnaud Daymard  1@  
1 : Théorie économique, modélisation et applications  (THEMA)  -  Website
CNRS : UMR8184, Université de Cergy Pontoise
33, boulevard du Port 95011 Cergy-Pontoise Cedex -  France

By using a simple model of structural change and of interactions between the primary and the secondary sector, this paper gives a simple explanation to the ambiguity that natural resources in the agricultural sector play in industrialization. In a closed economy, a low resource endowment will hinder industrialization if the country's population is close to a state of starvation. In a price-taking, open economy, a low resource endowment will accelerate industrialization, but this earlier take-off should not have welfare consequences. Additionnally, by postulating a simple feedback between industry and agriculture through an increased variety of agricultural inputs, we show that Engel's law creates a situation of multiple equilibria which might account for the poverty trap of countries facing a low agricultural productivity.

  • Other
Online user: 1