Author Question: Why have many developing countries pursued industry at the expense of agriculture? What has been the ... (Read 66 times)

cagreen833 · **on:** Jun 29, 2018

Why have many developing countries pursued industry at the expense of agriculture? What has been the result of this strategy?

What will be an ideal response?

Question 2

State the Coase theorem.

What will be an ideal response?

cclemon1 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Because developed economies are characterized by a large share of output and employment in the industrial sector, many developing countries seem to believe that development and industrialization are synonymous. In many cases,
developing countries have pursued industry at the expense of agriculture, with mixed results. Recent evidence suggests that some balance between industry and agriculture leads to the best outcome.

Answer to Question 2

The Coase theorem states that if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities, regardless of initial assignment of property rights.