Food Consumption and Growth in a Two Sector Economy - A Theoretical Model and Numerical Simulations

I discuss the dynamics of growth and structural change in a two- sector dual economy characterized by a positive relationship between nutrition and productivity. A rise in agricultural production increases food consumption as well as labor productivity. The different outcomes are discussed when the level of food consumption increases productivity either in agriculture or in industry (static effect) or when it influence the productivity of learning by doing (dynamic effect).