Wei-Bin ZhangCollege of Asia Pacific Management, Ritsumeikan Asia Pacific University,
Oita Prefecture, Japan
Received: 3 February 2008. Accepted: 21 January 2009.
This paper examines issues related to urbanization with labour migration. The main departures from the traditional approaches to dynamics of economic structures are that the paper uses an alternative approach to consumer behaviour and introduces human capital accumulation via learning by doing. The model describes dynamic interactions among agricultural and industrial production, rural and urban amenities, distribution of production factors and preferences with endogenous capital and human capital accumulation. We show that the dynamic system may have either a single or multiple equilibrium points, depending upon returns to scale in the two sectors. We also examined effects of changes in some parameters.
two-sector model, agricultural sector, industrial sector, physical capital accumulation, human capital accumulation, rural and urban amenities
JEL: R11, R14
Full paper as pdf version.