1. Agricultural Distortions, Structural Change, and Economic Growth: A Cross-Country Analysis.
- Author
-
Dennis, Benjamin N. and İşcan, Talan B.
- Subjects
AGRICULTURAL policy ,AGRICULTURAL taxes ,DEVELOPING countries economic policy ,ECONOMIC development ,FOOD prices ,GROSS domestic product ,DEVELOPING countries ,GOVERNMENT policy ,ECONOMICS - Abstract
Taxing agriculture to mobilize resources for industrialization has been a widely used development strategy. Using novel cross-country time-series data sets with direct measures of agricultural taxation, we examine how a policy bias against agriculture affects the speed of convergence in income per capita, structural change, and economic growth. We find that distortionary agricultural policies in poor economies can account for the emergence of convergence clubs in our sample by significantly retarding their structural transformation and economic growth. Overall, we find no evidence suggesting that policies that discriminate against agriculture have been beneficial for long-term economic growth. [ABSTRACT FROM AUTHOR]
- Published
- 2011
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