A Note on the Stability of the Harris-Todaro Model with Capital Mobility.

The present note derives the exact stability condition for the Harris-Todaro model with intersectoral c apital mobility where land is explicitly included as a third scarce f actor in agriculture. While the previous study by J. P. Neary states the difficulty of deriving a clear-cut result in such a case, this no te demonstrates that if capital and land are never technological subs titutes in the agriculture production, Neary's condition that the urb an sector is more capital abundant than the rural sector becomes a su fficient condition for local stability. Copyright 1988 by The London School of Economics and Political Science.