Agricultural sector and industrial agglomeration

Pierre Picard, Pierre M. Picard, Dao Zhi Zeng

Research output: Contribution to journalArticlepeer-review

Abstract

In many developing countries, agriculture hires at least as many workers as manufacturing industries. We investigate an economic geography model in which agricultural goods are costly to transport and in which manufactures hire labor from the local agricultural sector as unskilled labor. Our conclusions show that the parameters in the agricultural sector are crucial to determine the spatial configuration of economic activity. We provide an analytic treatment to the model. The location equilibria are compared with the first and second best outcomes. © 2004 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)75-106
Number of pages31
JournalJournal of Development Economics
Volume77
Issue number1
DOIs
Publication statusPublished - Jun 2005

Keywords

  • Agglomeration
  • Agricultural sector
  • Labor market
  • Migration

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