Agricultural Technology and Farm-Nonfarm Growth Linkages
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Agricultural growth stimulates rural nonfarm activity by boosting demand for production inputs
and consumer goods. But different kinds of agricultural technology promote different patterns
of nonfarm linkages. To explore how key features of agricultural technology affect growth in
the rural nonfarm economy, this paper reviews an array of cross-section and time-series evidence
bearing on the dynamics of the rural nonfarm economy. Then, using consumption and production
parameters associated with different agricultural technologies, it introduces a simple model which
isolates the effects of different technologies on nonfarm growth linkages.