Eugene D.

Alipio
ECOPE05: Economic Development Online
MR. FRANCIS A. GUMAWA

Read and answer the following questions below.

1. How do production and labor force shares in agriculture, industry, and services
change as GNP per capita increases? Have production and labor force propor- tions
for low-and high-income economies changed from 1977 (Figure 4-1) to the present?

Vertical farming can help utilize the country's relatively limited land area
and significantly increase the country's agricultural production and to further
expand its contribution to GDP and its growth. The factor with the highest impact
on the development of agriculture is the increase in agricultural productivity. As
economic development proceeds, the share of agriculture in GDP and total
employment changes being high but declining in developing countries, and low but
more stable in developed countries. Agriculture plays a crucial role in the economy
of developing countries, and provides the main source of food, income and
employment to their rural populations. However, improvements in agriculture and
land use are fundamental to achieving food security, poverty alleviation and overall
sustainable development.

2. What is a dual economy? Are all LDCs characterized by economic dualism?

A dual economy is the existence of two separate economic sectors within one
country, divided by different levels of development, technology, and different
patterns of demand. Sir Arthur Lewis used the concept of a dualistic economy as the
basis of his labor supply theory of rural-urban migration. A dual economy refers to
the existence of two distinct types of economic segments within an economy. This
involves: A capitalist based manufacturing sector. Labor intensive agricultural
sector (low productivity, geared towards subsistence farming or local markets). The
term dualism implies presence of both desirable and undesirable situations or
phenomena that are mutually exclusive to different groups of the society. The term
dual society refers to a society where two different sectors co-exist.

3. Will the skill composition of the labor force change as rapidly in LDCs as it did in
the past in DCs?

Support LDC efforts to facilitate the transfer of technology and the flow of
foreign direct investment that will improve agricultural productivity and
competitiveness. Facilitate market access of LDC’s agricultural commodities in
developed and developing countries, notably by improving terms of trade, adapting
multilateral trade rules to the institutional, human capital and infrastructural
context of the LDCs, and assisting in developing product quality and pre- and
postproduction standards.