Market Integration and Structural Transformation in a Poor Rural Economy

21 Pages Posted: 20 Apr 2016

See all articles by Måns Söderbom

Måns Söderbom

University of Oxford - Department of Economics

Bob Rijkers

World Bank

Date Written: March 1, 2009

Abstract

By developing a simple theoretical model of the impact of market integration on sectoral output and employment in a poor rural setting, this paper demonstrates that trade can induce asymmetric growth. Under certain, plausible, assumptions, the non-farm sector will grow much faster than the agricultural sector when markets become integrated. Promoting market integration may thus be an effective way of encouraging diversification beyond agriculture and catalysing structural change in poor rural economies.

Keywords: Food & Beverage Industry, Economic Theory & Research, Rural Poverty Reduction, Food Security

Suggested Citation

Soderbom, Mans and Rijkers, Bob, Market Integration and Structural Transformation in a Poor Rural Economy (March 1, 2009). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2009. Available at SSRN: https://ssrn.com/abstract=1357183

Mans Soderbom (Contact Author)

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44-(0)1865 271084 (Phone)
+44-(0)1865 281447 (Fax)

Bob Rijkers

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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