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This dissertation consists of three chapters. This first chapter studies ability sorting between rural and urban regions induced by regional differences in prices and evaluates the importance of this mechanism in explaining the large rural-urban (agriculture-non-agriculture) income gap in...

The agro-fundamentalists consider agriculture as the engine of growth while agro-pessimists argue that economic growth causes agricultural productivity. It is the main engine of growth in agriculture-based countries; less important in transforming economies; and plays the same role as other...