1 Agricultural Development
This problem asks you to collect data on agricultural employment and productivity and explain causes for the low agricultural productivity in poor countries.
- Select six countries – three high-income countries and three low-income countries. For each country, find data on the employment share of agriculture; include as many years as possible. Draw two figures to show the employment share of agriculture of these countries for the time period in your sample: One figure for data of the three high-income countries, and the other for the three low-income countries. Label each curve clearly. (2 marks)
- For the same six countries as in Part (a), find data on agriculture value added per worker (i.e., labor productivity in agriculture); include as many years as possible. Draw two figures to show the agriculture value added per worker of these countries for the time period in your sample: one figure for data of the three high-income countries, and the other for the three low-income countries. Label each curve clearly. (2 marks)
- Compare the agricultural employment share and agricultural labor productivity, both the level and the trend, between the two groups of countries in Part (a) and (b) (i.e., high-income low-income countries). What can you tell about the differences? (2 marks)
- One theory explains the low agricultural labor productivity in low-income countries with high transport cost (Gollin and Rogerson, 2014). Use a 2-region – 2-sector economy model to explain why high transport costs may lower labor (2 marks)
Instruction for Part (a) and (b):
- Download data from the World Bank website following the link: https://data.worldbank.org. Search “Employment in agriculture (% of total employment)” (for Part a) and “Agriculture, forestry, and fishing, value added per worker” (for Part b). In the new window that appears,
under “Download”, click “CSV” or “EXCEL” to download the data.
