Reap what you sow: Agricultural technology,urbanization and structural change |
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| Institution: | 1. University of Birmingham, United Kingdom;2. Bangor University and IZA, United Kingdom;1. University of Rennes 1, CREM-CNRS, Condorcet Center, France;2. University of Freiburg, Walter-Eucken Institute, Germany;1. King''s College London, London, UK;2. Harvard T.H. Chan School of Public Health, Harvard University, Boston, MA, USA;1. Tilburg University, Department of Organization Studies, PO Box 90153, 5000 LE, Tilburg, the Netherlands;2. Vrije Universiteit Amsterdam, School of Business & Economics, KIN Center for Digital Innovation, De Boelelaan 1105, 1081 HV, Amsterdam, the Netherlands |
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| Abstract: | This paper studies how productivity-enhancing agricultural technology affects urbanization by provoking structural change. We investigate these issues using a natural experiment in the United States. The results show that technologies which improve crop productivity lead to a less urbanized economy as economic activity relocates from manufacturing and services towards agriculture. The effects are highly persistent and are driven by the technology increasing agricultural labor demand. Our findings highlight the potentially unintended, disruptive force of innovative technologies. |
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| Keywords: | Agricultural technology Productivity Urbanization Structural change |
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