Agricultural sector and industrial agglomeration

Pierre M. Picard, Dao Zhi Zeng

Research output: Contribution to journalArticlepeer-review

61 Citations (Scopus)


In many developing countries, agriculture hires at least as many workers as manufacturing industries. We investigate an economic geography model in which agricultural goods are costly to transport and in which manufactures hire labor from the local agricultural sector as unskilled labor. Our conclusions show that the parameters in the agricultural sector are crucial to determine the spatial configuration of economic activity. We provide an analytic treatment to the model. The location equilibria are compared with the first and second best outcomes.

Original languageEnglish
Pages (from-to)75-106
Number of pages32
JournalJournal of Development Economics
Issue number1
Publication statusPublished - 2005 Jun
Externally publishedYes


  • Agglomeration
  • Agricultural sector
  • Labor market
  • Migration

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics


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