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Networks and Spatial Economics

, Volume 19, Issue 3, pp 717–729 | Cite as

New Technological Knowledge, Rural and Urban Agriculture, and Steady State Economic Growth

  • Amitrajeet A. BatabyalEmail author
  • Karima Kourtit
  • Peter Nijkamp
Article
  • 70 Downloads

Abstract

We analyze the growth effects over space arising from the adoption of new agricultural technology in a rural-urban setting. We use a dynamic model to study the impacts of technology and learning on the steady state growth rates of rural and urban regions that produce agricultural goods. New applications of agricultural technologies are tested and adopted in the rural region and they are gradually learned by the urban region. Our analysis leads to four results. First, we determine the steady state growth rate of agricultural output per worker in the rural region. Second, we define an urban to rural region agricultural technology knowledge ratio, analyze its stability properties, and then use this ratio to compute the steady state growth rate of agricultural output per worker in the urban region. Third, for specific parameter values, we study the ratio of agricultural output per worker in the urban to the rural region when both regions have converged to their balanced growth paths. Finally, we discuss the policy implications of our analysis.

Keywords

Economic growth Learning Rural region Technology Urban region 

JEL Codes

O18 Q16 R11 

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsRochester Institute of TechnologyRochesterUSA
  2. 2.JADS‘s-HertogenboschThe Netherlands
  3. 3.Tinbergen Institute, Amsterdam, The NetherlandsA. Mickiewicz UniversityPoznanPoland

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