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Market integration and structural transformation in a poor rural economy, Volume 1
Author:Soderbom, Mans; Rijkers, Bob; Country:World;
Date Stored:2009/03/09Document Date:2009/03/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Rural Poverty Reduction; Food & Beverage Industry; Food Security
Language:EnglishRegion:The World Region
Report Number:WPS4856Collection Title:Policy Research working paper ; no. WPS 4856
Volume No:1  

Summary: 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 and catalysing structural change in poor rural economies.

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