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Economic Growth, Comparative Advantage and Agricultural Trade of Pacific Rim Countries

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  • Anderson, Kym

Abstract

While agriculture's contribution to national output and employment tends to decline with economic growth, its contribution to exports need not. Neoclassical theory suggests that a country's comparative advantage in agriculture depends on its endowment of agricultural land relative to mineral resources and nonfarm capital, compared with endowment ratios in other countries. Over time, a country's agricultural comparative advantage will decline faster, the faster its mineral extraction, its growth in nonfarm capital per worker and its rates of nonfarm relative to farm technological change, again compared with other countries. Empirical support for this theory is provided by evidence from the diverse set of economies on the Pacific rim. The paper concludes with a discussion of likely future trends in comparative advantage and agricultural trade of Pacific rim countries, particularly Australia.

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File URL: http://purl.umn.edu/12518
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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 51 (1983)
Issue (Month): 03 (December)
Pages:

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Handle: RePEc:ags:remaae:12518

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Related research

Keywords: International Relations/Trade;

References

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  1. Corden, W M, 1982. "Exchange Rate Policy and the Resources Boom," The Economic Record, The Economic Society of Australia, vol. 58(160), pages 18-31, March.
  2. Anderson, Kym, 1983. "Growth of agricultural protection in East Asia," Food Policy, Elsevier, vol. 8(4), pages 327-336, November.
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Citations

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Cited by:
  1. Tyers, Rodney & Anderson, Kym, 1985. "Price, Trade and Welfare Effects of Agricultural Protection: The Case of East Asia," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(03), December.
  2. Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," Working Papers 2011.65, Fondazione Eni Enrico Mattei.
  3. Kym Anderson & Young-il Park, 1989. "China and the international relocation of world textile and clothing activity," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(1), pages 129-148, March.
  4. Fan, Shenggen & Wailes, Eric & Cramer, Gail, 1994. "Impact of eliminating government interventions on China's rice sector," Agricultural Economics, Blackwell, vol. 11(1), pages 71-81, September.
  5. Anderson, Kym, 1990. "China's Economic Growth, Changing Comparative Advantages and Agricultural Trade," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), April.

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