Structural Change, Dualism and Economic Development : The Role of the Vulnerable Poor on Marginal Lands

Empirical evidence indicates that in many developing regions, the extreme poor in more marginal land areas form a "residual" pool of rural labor. Structural transformation in such developing economies depends crucially on labor and land use decisions of these most-vulnerable populations located on abundant but marginal agricultural land. Although the modern sector may be the source of dynamic growth through learning-by-doing and knowledge spillovers, patterns of labor, land and other natural resources use in the rural economy matter in the overall dynamics of structural change. The concentration of the rural poor on marginal lands is essentially a barometer of economy-wide development. As long as there are abundant marginal lands for cultivation, they serve to absorb rural migrants, increased population, and displaced unskilled labor from elsewhere in the economy. Moreover, the economy is vulnerable to the "Dutch disease" effects of a booming primary products sector. As a consequence, productivity increases and expansion in the commercial primary production sector will cause manufacturing employment and output to contract, until complete specialization occurs. Avoiding such an outcome and combating the inherent dualism of the economy requires both targeted polices for the modern sector and traditional agriculture on marginal lands.

Bibliographic Details

Main Author:	Barbier, Edward B.
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2013-05
Subjects:	ABSOLUTE POVERTY, AGRICULTURAL DEVELOPMENT, AGRICULTURAL EXTENSION, AGRICULTURAL INTENSIFICATION, AGRICULTURAL LAND, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTIVITY GROWTH, AGRICULTURAL RESEARCH, AGRICULTURAL SECTOR, AGRICULTURE, AMOUNT OF LAND, ARABLE LAND, AVERAGE PRODUCTIVITY, CAPITAL ACCUMULATION, CAPITAL GOODS, CAPITAL INPUT, CAPITAL INVESTMENT, CAPITAL STOCK, CAPITAL-LABOR, CAPITAL-LABOR RATIO, CHRONIC POVERTY, CLASSICAL ECONOMICS, COMPARATIVE ADVANTAGE, CONSTANT RETURNS, CONSTANT RETURNS TO SCALE, CONSUMERS, CONSUMPTION EXPENDITURES, CREDIT POLICIES, CROPLAND, DECENTRALIZED DECISIONS, DECREASING RETURNS, DEFORESTATION, DEVELOPED COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DEVELOPMENT POLICY, DIMINISHING RETURNS, DISADVANTAGED AREAS, DUAL ECONOMY, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC MODELS, ECONOMIC RESEARCH, ECONOMIC THEORY, ECONOMICS, ECONOMISTS, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPIRICAL EVIDENCE, EMPLOYMENT OPPORTUNITIES, ENVIRONMENTAL, ENVIRONMENTAL DEGRADATION, ENVIRONMENTS, EQUILIBRIUM, EXCESS SUPPLY, EXPANSION OF IRRIGATION, EXPLOITATION, EXPORTS, EXTERNALITIES, FARMERS, FARMLAND, FARMS, FIXED LAND, FOOD POLICY, FOREST MANAGEMENT, FORESTRY, GDP, GDP PER CAPITA, GLOBAL INTEREST, GROWTH OUTCOME, GROWTH PATH, GROWTH RATE, GROWTH RATES, HOUSEHOLD INCOME, HUMAN CAPITAL, INCOME, INCREASE IN CAPITAL, INCREASING RETURNS, INPUT USE, INTEREST RATE, LABOR FORCE, LABOR INPUT, LABOR PRODUCTIVITY, LABOR SUPPLY, LABOR USE, LAND DISTRIBUTION, LAND QUALITY, LAND SCARCITY, LAND USE, MACROECONOMICS, MARGINAL PRODUCT, MARGINAL PRODUCTIVITY, MIDDLE INCOME COUNTRIES, MIGRATION, NATURAL RESOURCE EXPLOITATION, NATURAL RESOURCES, NORMAL PROFITS, OIL, OPEN ECONOMY, OPTIMIZATION, OUTPUT PER CAPITA, PASTURES, PER CAPITA CONSUMPTION, PERFECT COMPETITION, POLITICAL ECONOMY, POOR, POOR COUNTRIES, POOR ECONOMIES, POOR FARMERS, POOR HOUSEHOLDS, POOR RURAL AREAS, POOR RURAL HOUSEHOLDS, POPULATION GROWTH, POVERTY ALLEVIATION, POVERTY INCIDENCE, POVERTY MAPPING, POVERTY MAPS, POVERTY MEASURES, POVERTY REDUCTION, POVERTY STATUS, PRODUCERS, PRODUCTION FUNCTION, PRODUCTIVITY GROWTH, PRODUCTIVITY INCREASES, PRODUCTIVITY OF CAPITAL, PROFITABILITY, PUBLIC GOOD, PUBLIC SERVICES, REAL GDP, REAL WAGE, REAL WAGES, REMOTE AREAS, REMOTE REGIONS, RESOURCE CONSTRAINTS, RESOURCE USE, RURAL, RURAL AREA, RURAL AREAS, RURAL COMMUNITIES, RURAL DEVELOPMENT, RURAL ECONOMY, RURAL EMPLOYMENT, RURAL LABOR, RURAL MIGRANTS, RURAL MIGRATION, RURAL POOR, RURAL POPULATION, RURAL POVERTY, RURAL POVERTY RATE, RURAL POVERTY RATES, RURAL ROAD, RURAL ROADS, RURAL SECTOR, RURAL WORKERS, SMALLHOLDER AGRICULTURE, STRUCTURAL CHANGE, SUPPLY OF LAND, SURPLUS LABOR, TARGETING, TECHNICAL CHANGE, TECHNICAL PROGRESS, TECHNOLOGICAL CHANGE, TERMS OF TRADE, TIMBER, TOTAL CAPITAL STOCK, TOTAL LABOR FORCE, TRANSPORT, UNEMPLOYMENT, URBANIZATION, VALUE ADDED, WETLANDS,
Online Access:	http://documents.worldbank.org/curated/en/2013/05/17744048/structural-change-dualism-economic-development-role-vulnerable-poor-marginal-lands http://hdl.handle.net/10986/15596
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