To encourage economic growth in a developing economy, higher agricultural productivity has been believed to enhance the manufacturing sector's development, which provides the transition into industrialization. Although this positive linkage between agricultural productivity and economic growth...

In existing two-sector, human capital–based endogenous growth models with social constant returns, local equilibrium indeterminacy emerges based upon either differential factor tax rates or sector-specific externalities. Two primary results are established in this paper. First, once there are...