Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

Bending the Kuznets Curve - Wrenching and Levelling Forces during Agricultural Transformation in Taiwan and Chile

Andersson, Martin LU (2003) In Lund Studies in Economic History 25.
Abstract
What are the effects of growth on equality in a long-term perspective? What are the effects of different patterns of equality on subsequent growth? And why are these questions relevant for the understanding of economic development? These are the overriding questions posed in the dissertation. They are addressed in the context of long-term change from economic backwardness to modern economic growth by examining the processes of agricultural transformation of two successful growth achievers -- Taiwan and Chile. In recent day empirical examinations of the growth-equality relationship, the so-called Kuznets-curve - that inequality initially increases before it declines - has been rejected on the grounds that the relationship does not appear in... (More)
What are the effects of growth on equality in a long-term perspective? What are the effects of different patterns of equality on subsequent growth? And why are these questions relevant for the understanding of economic development? These are the overriding questions posed in the dissertation. They are addressed in the context of long-term change from economic backwardness to modern economic growth by examining the processes of agricultural transformation of two successful growth achievers -- Taiwan and Chile. In recent day empirical examinations of the growth-equality relationship, the so-called Kuznets-curve - that inequality initially increases before it declines - has been rejected on the grounds that the relationship does not appear in such systematic fashion. In assessing this latter-day comprehension, the author argues that the thrust of the Kuznets-curve is not its shape but the underlying forces at play during structural change. Such an approach then concentrates on the forces that wrench and level income distribution during structural change. As far as Taiwan and Chile are concerned, such forces have been, to different degrees, in constant struggle during their agricultural transformations. In the initially relatively equal income distribution in Taiwan, the dynamics of homogenous demand eased the wrenching forces of structural change despite population pressure and forceful industrialisation. Chile, on the other hand, starting from a wrenched situation, experienced aggravated wrenching and delayed dynamic change due to its lack of universal access to markets. When dynamic change eventually took place - after decades of forced institutional change - levelling forces outpaced the wrenching forces. The study proposes a causal analytical framework in which wrenching and levelling forces during long-term structural change may be identified and grasped. The framework includes the initial distribution of income as its organising principle . Since reliable longitudinal data of personal income distribution is unavailable, a wide range of variables, indicative of economic change in general and agricultural performance in particular, is put to use. (Less)
Abstract (Swedish)
Popular Abstract in Swedish

Hur förhåller sig ekonomisk tillväxt och fördelning till varandra när en ekonomi genomgår en strukturomvandlingsprocess? Denna klassiska frågeställning utgör det centrala problemet för denna avhandling. När Simon Kuznets i mitten av 1950-talet tog sig an samma fråga fann han med begränsade data att ekonomisk tillväxt förmodligen ökar inkomstklyftorna under en inledande period innan inkomster så småningom jämnas ut. Kuznets tänkte sig att när en traditionell, eftersläpande, ekonomi börjar att omvandlas i en modernare riktning påbörjas en serie strukturella skift där effekterna av progressiva sektorer skapar löneskillnader, speciellt mellan industrin och jordbruket. Efter det att dessa nya sektorer... (More)
Popular Abstract in Swedish

Hur förhåller sig ekonomisk tillväxt och fördelning till varandra när en ekonomi genomgår en strukturomvandlingsprocess? Denna klassiska frågeställning utgör det centrala problemet för denna avhandling. När Simon Kuznets i mitten av 1950-talet tog sig an samma fråga fann han med begränsade data att ekonomisk tillväxt förmodligen ökar inkomstklyftorna under en inledande period innan inkomster så småningom jämnas ut. Kuznets tänkte sig att när en traditionell, eftersläpande, ekonomi börjar att omvandlas i en modernare riktning påbörjas en serie strukturella skift där effekterna av progressiva sektorer skapar löneskillnader, speciellt mellan industrin och jordbruket. Efter det att dessa nya sektorer blivit tongivande i ekonomin, kommer de forna låginkomstsektorerna att försvinna. Löneskillnaderna minskar således. Denna process, som tar decennier eller kanske rent av upp till ett sekel, skapar obalanser också av institutionell karaktär (ex. avskaffandet av privilegiesamhället) och av demografiska skäl (ex. den demografiska transitionen). Denna analys av det långsiktiga sambandet mellan tillväxt och fördelning har dock under senare år blivit ifrågasatt med hjälp av inkomstfördelningsdata av främst tvärsnittskaraktär från de senaste decennierna. Förespråkare inom denna nya skolbildning hävdar att något sytematiskt samband ej står att finna och denna uppfattning har kommit att bli den allmänt accepterade. Författaren till denna avhandling menar dock att ett sådant avfärdande kan vara förhastat eftersom långsiktigheten och strukturomvandlingsproblematiken inte tagits i vederbörligt beaktande. Genom att studera två framgångsländer - Taiwan och Chile - i ett långsiktigt perspektiv, med speciellt intresse riktat till omvandlingen av jordbruket, finner författaren att tillväxten ibland varit snedvridande och ibland utjämnande. Författaren hävdar att dessa effekter utgörs av krafter som sätts i spel under omvandlingsförloppet och att det är denna dynamik som borde vara det centrala i studiet av tillväxt/fördelningsfrågan. I fallet Taiwan verkar det som om övervägande inkomstutjämnande krafter sattes i spel i samband med jordbrukets universella produktivitetsökning i slutet på 1920-talet. I fallet Chile finner författaren att liknande utjämningskrafter växte sig starka i mitten på 1980-talet efter det att det gamla produktivitetshämmande haciendasystemet brutit samman. Vidare spekulerar författaren i att en initialt jämlik fördelning skapar en bredbaserad efterfrågestruktur där köpkraften på hemmamarknaden skapar utrymme till successiv välståndsökning. I en initialt ojämlik situation, blir däremot omvandlingsprocessen haltande och fördröjd. (Less)
Please use this url to cite or link to this publication:
author
supervisor
opponent
  • Griffin, Keith, UC Riverside
organization
publishing date
type
Thesis
publication status
published
subject
keywords
Chile, Taiwan, initial conditions, agricultural transformation, wrenching and levelling forces, the Kuznets Curve, Economic growth, income distribution, Social and economic history, Ekonomisk och social historia
in
Lund Studies in Economic History
volume
25
pages
207 pages
publisher
Almqvist & Wiksell International
defense location
Crafoordsalen Ekonomicentrum, Lund
defense date
2003-09-12 10:15:00
ISSN
1400-4860
ISBN
91-22-02026-8
language
English
LU publication?
yes
id
4cd31f41-6866-4ecf-af8b-dba001759541 (old id 21430)
date added to LUP
2016-04-01 16:30:14
date last changed
2019-05-21 18:39:22
@phdthesis{4cd31f41-6866-4ecf-af8b-dba001759541,
  abstract     = {{What are the effects of growth on equality in a long-term perspective? What are the effects of different patterns of equality on subsequent growth? And why are these questions relevant for the understanding of economic development? These are the overriding questions posed in the dissertation. They are addressed in the context of long-term change from economic backwardness to modern economic growth by examining the processes of agricultural transformation of two successful growth achievers -- Taiwan and Chile. In recent day empirical examinations of the growth-equality relationship, the so-called Kuznets-curve - that inequality initially increases before it declines - has been rejected on the grounds that the relationship does not appear in such systematic fashion. In assessing this latter-day comprehension, the author argues that the thrust of the Kuznets-curve is not its shape but the underlying forces at play during structural change. Such an approach then concentrates on the forces that wrench and level income distribution during structural change. As far as Taiwan and Chile are concerned, such forces have been, to different degrees, in constant struggle during their agricultural transformations. In the initially relatively equal income distribution in Taiwan, the dynamics of homogenous demand eased the wrenching forces of structural change despite population pressure and forceful industrialisation. Chile, on the other hand, starting from a wrenched situation, experienced aggravated wrenching and delayed dynamic change due to its lack of universal access to markets. When dynamic change eventually took place - after decades of forced institutional change - levelling forces outpaced the wrenching forces. The study proposes a causal analytical framework in which wrenching and levelling forces during long-term structural change may be identified and grasped. The framework includes the initial distribution of income as its organising principle . Since reliable longitudinal data of personal income distribution is unavailable, a wide range of variables, indicative of economic change in general and agricultural performance in particular, is put to use.}},
  author       = {{Andersson, Martin}},
  isbn         = {{91-22-02026-8}},
  issn         = {{1400-4860}},
  keywords     = {{Chile; Taiwan; initial conditions; agricultural transformation; wrenching and levelling forces; the Kuznets Curve; Economic growth; income distribution; Social and economic history; Ekonomisk och social historia}},
  language     = {{eng}},
  publisher    = {{Almqvist & Wiksell International}},
  school       = {{Lund University}},
  series       = {{Lund Studies in Economic History}},
  title        = {{Bending the Kuznets Curve - Wrenching and Levelling Forces during Agricultural Transformation in Taiwan and Chile}},
  volume       = {{25}},
  year         = {{2003}},
}