ABSTRACT
THE ECONOMIC TRANSFORMATION Economic growth is almost always accompanied by an economic transformation from agriculture into other activities. As the economy expands, the agricultural sector grows more slowly than manufacturing and services, and agriculture accounts for a declining fraction of employment, output, and consumer expenditures. The transformation from farm to non-farm activities as incomes rise applies to regions, countries, and the world as a whole. It is among the most dependable relationships in the world economy, and has major effects on peoples’ lives. This chapter explores its causes and its consequences, both within agriculture and for society as a whole.
