Land Acquisition For Industrialisation And Employment In Developing Economies

Abstract

This paper attempts to construct an analytical framework to examine the effects of land acquisition for industrialisation on aggregate employment and income of a developing country where the agricultural sector is supply constrained and the industrial sector is demand constrained. The results indicate that agricultural land acquisition for industrialisation does not necessarily improve the employment scenario of a country. But there is scope of making this policy effective by properly choosing the land for conversion, new industries to be set up etc. For example, the land to be converted should be less fertile, the market demand for the new industry to be constructed in the acquired land should be highly sensitive to its price, the industrial sector should be more labour-intensive etc.