Abstract

This paper analyzes the impact of a land price administration on structural change from agricultural sector to other sectors of the economy. We developed a two-sector recursive dynamic computable general equilibrium model, in which the rural agricultural sector uses the land factor, in addition to labor and capital. The urban non-farm sector uses labor and capital. The mobility of the labor force from agriculture to the non-agricultural urban sector is favored by migration. The model is calibrated on the 2013 social accounting matrix of Morocco, built for this purpose. The empirical results show that the administration of land prices has a negative impact on labor demand in the non-agricultural sector, leads to a delay in structural transformation and has a positive and significant effect on rural wages.


Keywords: structural transformation, land, computable general equilibrium model, Morocco