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Is agriculture the engine of growth?

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Author Info
Richard Tiffin
Xavier Irz

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Abstract

We seek to address formally the question raised by Gardner (2003) in his Elmhirst lecture as to the direction of causality between agricultural value added per worker and Gross Domestic Product (GDP) per capita. Using the Granger causality test in the panel data analyzed by Gardner for 85 countries, we find overwhelming evidence that supports the conclusion that agricultural value added is the causal variable in developing countries, while the direction of causality in developed countries is unclear. We also examine further the use of the Granger causality test in integrated data and provide evidence that the performance of the test can be increased in small samples through the use of the bootstrap. Copyright 2006 International Association of Agricultural Economists.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2006.00141.x
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Publisher Info
Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 35 (2006)
Issue (Month): 1 (07)
Pages: 79-89
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Handle: RePEc:bla:agecon:v:35:y:2006:i:1:p:79-89

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  1. Nin-Pratt, Alejandro & Johnson, Michael & Magalhaes, Eduardo & Diao, Xinshen & You, Liang & Chamberlin, Jordan, 2009. "Priorities for realizing the potential to increase agricultural productivity and growth in Western and Central Africa:," IFPRI discussion papers 876, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Kaya, Ozgur & Kaya, Ilker & Gunter, Lewell, 2008. "The Impact of Agricultural Aid on Agricultural Sector Growth," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6743, Southern Agricultural Economics Association. [Downloadable!]
  3. Timmer, Peter & Weisbrod, Julian & McCulloch, Neil, 2006. "The Pathways out of Poverty in Rural Indonesia ? an empirical assessment," Proceedings of the German Development Economics Conference, Berlin 2006 29, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  4. Chebbi, Houssem Eddine & Lachaal, Lassaad, 2007. "Agricultural sector and economic growth in Tunisia: Evidence from co-integration and error correction mechanism," MPRA Paper 9101, University Library of Munich, Germany. [Downloadable!]
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  5. McCulloch, Neil & Weisbrod, Julian & Timmer, C. Peter, 2007. "Pathways out of poverty during an economic crisis : an empirical assessment of rural Indonesia," Policy Research Working Paper Series 4173, The World Bank. [Downloadable!]
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  6. Breisinger, Clemens & Diao, Xinshen, 2008. "Economic transformation in theory and practice: What are the messages for Africa?," IFPRI discussion papers 797, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Vernon Henderson & Adam Storeygard & David N. Weil, 2009. "Measuring Economic Growth from Outer Space," Working Papers 2009-8, Brown University, Department of Economics. [Downloadable!]
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  8. Montalvo, Jose G. & Ravallion, Martin, 2009. "The pattern of growth and poverty reduction in China," Policy Research Working Paper Series 5069, The World Bank. [Downloadable!]
  9. Bezemer, Dirk & Headey, Derek, 2007. "Agriculture, Development and Urban Bias," MPRA Paper 7026, University Library of Munich, Germany. [Downloadable!]
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  10. Jochen Hartwig, 2008. "Has health capital formation cured ‘Baumol’s Disease’? – Panel Granger causality evidence for OECD countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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