Land-constrained growth in a developing economy: A Kaldorian perspective
The paper develops a two-sector model of economic growth, using agriculture and industry. The distinguishing feature in this analysis is that land is an essential input in the agricultural sector, but it is also used in the production process of industrial sector, which is assumed to be imperfectly...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2022-10-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17614 |
| _version_ | 1811172617248309248 |
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| author | Isha Gupta |
| author_facet | Isha Gupta |
| author_sort | Isha Gupta |
| collection | DOAJ |
| description |
The paper develops a two-sector model of economic growth, using agriculture and industry. The distinguishing feature in this analysis is that land is an essential input in the agricultural sector, but it is also used in the production process of industrial sector, which is assumed to be imperfectly competitive. The significant role of land allocations is highlighted for a developing economy like India, where any constraint on land transfers from agricultural to non-agricultural sectors imposes a constraint on the overall growth process of the economy. Using the two-sector Kaldorian framework, we analyse the complementary interactions between agriculture and industry through trade flows, labour movements, and land transfers in this setup. We characterize the balanced growth path for such an economy in the long run using two scenarios: a) equilibrium growth with fixed distribution of land by the centralized authority in each sector and b) equilibrium growth with inter-sectoral land transfers accompanied by land-saving innovations in each sector.
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| first_indexed | 2024-04-10T17:33:12Z |
| format | Article |
| id | doaj.art-22a5cc38b0464ef6995b6471a1d8ee6c |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:33:12Z |
| publishDate | 2022-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-22a5cc38b0464ef6995b6471a1d8ee6c2023-02-03T16:42:07ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432022-10-017530210.13133/2037-3643/17614Land-constrained growth in a developing economy: A Kaldorian perspectiveIsha Gupta0Ramanujan College (University of Delhi) & Centre for Economic Studies and Planning (CESP), Jawaharlal Nehru University The paper develops a two-sector model of economic growth, using agriculture and industry. The distinguishing feature in this analysis is that land is an essential input in the agricultural sector, but it is also used in the production process of industrial sector, which is assumed to be imperfectly competitive. The significant role of land allocations is highlighted for a developing economy like India, where any constraint on land transfers from agricultural to non-agricultural sectors imposes a constraint on the overall growth process of the economy. Using the two-sector Kaldorian framework, we analyse the complementary interactions between agriculture and industry through trade flows, labour movements, and land transfers in this setup. We characterize the balanced growth path for such an economy in the long run using two scenarios: a) equilibrium growth with fixed distribution of land by the centralized authority in each sector and b) equilibrium growth with inter-sectoral land transfers accompanied by land-saving innovations in each sector. https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17614Two-sector Growth ModelAgriculture, IndustryLand-constraintBalanced Growth Path |
| spellingShingle | Isha Gupta Land-constrained growth in a developing economy: A Kaldorian perspective PSL Quarterly Review Two-sector Growth Model Agriculture, Industry Land-constraint Balanced Growth Path |
| title | Land-constrained growth in a developing economy: A Kaldorian perspective |
| title_full | Land-constrained growth in a developing economy: A Kaldorian perspective |
| title_fullStr | Land-constrained growth in a developing economy: A Kaldorian perspective |
| title_full_unstemmed | Land-constrained growth in a developing economy: A Kaldorian perspective |
| title_short | Land-constrained growth in a developing economy: A Kaldorian perspective |
| title_sort | land constrained growth in a developing economy a kaldorian perspective |
| topic | Two-sector Growth Model Agriculture, Industry Land-constraint Balanced Growth Path |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17614 |
| work_keys_str_mv | AT ishagupta landconstrainedgrowthinadevelopingeconomyakaldorianperspective |