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

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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 u...

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Bibliographic Details
Main Author:	Barbier, Edward B.
Language:	English en_US
Published:	World Bank, Washington, DC 2013
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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Summary:	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.