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What is the role of agricultural surplus in financing industrialization? What are the implications of different trade and industrial policies for agricultural development? What are the respective roles of allocative efficiency and production efficiency in the process of development? These are some of the questions answered in this book. Dr Karshenas calls for a rethinking of some of the central hypotheses in economic development, arguing that productivity gains through better utilization of resources within sectors may be more crucial in the long run than efficient allocation of resources between sectors. He supports his argument by analysing the interaction between industry and agriculture in the development of China, India, Iran, Japan, and Taiwan, and shows that the emphasis in development literature on the role of agricultural surplus in financing industrialization has been misplaced. This book is intended for postgraduate and third-year undergraduate students of development economics and economic history. Professionals in international organizations.