Developing countries employ a very large share of their workforce in agriculture, a sector in which their labor … productivity is particularly low. We take a macroeconomic approach to analyze the role of agriculture in development. We construct … dramatically relative to labor prices; concurrently, capital and intermediate input use in agriculture increases by a factor of 300 …

Japan, an isolated, backward country in the 1860s, industrialized rapidly to become a major industrial power by the …

. \textit{Ceteris paribus} lower trade costs in non-agriculture lead to fewer firms, but cheaper agricultural imports releases … results broadly consistent with the theory, with declines in the number of businesses where structural transformation is weak …

distribution, which support the aggregate and micro-level implications of our theory …