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Agriculture in developing countries is predominantly characterized by small-scale landholdings, which hinder the adoption of modern inputs and the realization of agricultural modernization. The agricultural producer service sector, acting as an intermediate sector, plays a crucial role in facilitating this process. This chapter constructs a three-sector general equilibrium model to delineate this process: a portion of manufacturing goods is utilized by the agricultural producer service sector, whose outputs serve as intermediate inputs that substitute for labor in agriculture.

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Can Agricultural Subsidies Improve Wage Inequality in the Presence of the Agricultural Modernization in Developing Countries?

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  • 发表日期：

    2025年

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  • Dianshuang Wang

摘要

Agriculture in developing countries is predominantly characterized by small-scale landholdings, which hinder the adoption of modern inputs and the realization of agricultural modernization. The agricultural producer service sector, acting as an intermediate sector, plays a crucial role in facilitating this process. This chapter constructs a three-sector general equilibrium model to delineate this process: a portion of manufacturing goods is utilized by the agricultural producer service sector, whose outputs serve as intermediate inputs that substitute for labor in agriculture.