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Market integration and structural transformation in a poor rural economy
 
Author:Soderbom, Mans; Rijkers, Bob; Collection Title:Policy Research working paper ; no. WPS 4856
Country:World; Date Stored:2009/03/09
Document Date:2009/03/01Document Type:Policy Research Working Paper
SubTopics:Economic Theory & Research; Rural Poverty Reduction; Food & Beverage Industry; Food SecurityLanguage:English
Region:The World RegionReport Number:WPS4856
Volume No:1 of 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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