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Google圖書搜尋
Agricultural Productivity, the Real Effective Exchange Rate, and Structural Change
Richard Grabowski
Sharmistha Self
其他書名
Some Evidence from Africa
出版
SSRN
, 2020
URL
http://books.google.com.hk/books?id=FSfhzwEACAAJ&hl=&source=gbs_api
註釋
Agriculture is thought to play a number of roles in the early development process. All of these roles involve fostering non-agricultural development, in particular manufacturing. It is argued in this paper that agriculture plays a role that has hitherto been ignored. Specifically, if agricultural labor productivity increases faster than manufacturing labor productivity, the real effective exchange rate will depreciate. This depreciation of real effective exchange rate occurs because in very poor countries agriculture makes up the dominant share of both GDP and employment. The depreciation also makes it easier for a country to expand the production of tradables relative to nontradables, with manufacturing being the main tradable. This proposition, which as agricultural labor productivity increases relative to manufacturing labor productivity the real effective exchange rate depreciates, is tested using data drawn from 10 sub-Saharan African countries.