ABSTRACT
The process of agricultural transformation involves a shift from low-productivity, subsistence farming to high-productivity, commercial agriculture. These changes in agriculture, in turn, trigger sweeping structural changes that ripple through the broader economy. At the macro level, agricultural transitions pave the way for economic diversification into services and manufacturing. At the household level, commercialization enables agricultural specialization as well as diversification into nonfarm activities. Spatially, agricultural productivity growth and commercialization contribute to increasing geographic concentration of population and economic activity in urban centers. The widely varying institutional contexts within which agricultural transitions unfold help to shape agricultural trajectories, with consequently important implications for rural households and the macro economy.
