Economic Growth and Development

(singke) #1

Biased technological change: the green revolution and
industrialization


Technological change can be biased such that it favours one sector of the
economy more than others. Figure 5.3 shows technological change biased
towards the agricultural sector. A good example of this was the ‘green revolu-
tion’ of the mid-1960s when the application of science to agriculture boosted


100 Sources of Growth in the Modern World Economy since 1950


Figure 5.2 Technological change

Industrial
output

Agricultural output

Technological
change

New production
possibilit y frontier

Old production
possibility frontier

Industrial
output

Agricultural output

Technological change
in agriculture

Figure 5.3 Technological change: the green revolution
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