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The Potentials of Agro-Industry for Growth Promotion and Equality Improvement in Indonesia

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  • Luthfi Fatah

    ()
    (Lambung Mangkurat University, Indonesia)

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    Abstract

    Despite its significant roles in accumulating and sustaining growth, agriculture’s contribution to GDP and employment inevitably decreases as the economy grows. One possible strategy to promote the welfare of the agricultural sectors as well attain overall economic growth is by the development of agro-industry. Earlier research findings have contended that agro-industry improves income equality while still maintaining economic growth. This article uses empirical data in a Social Accounting Matrix (SAM) framework to verify these findings. The results reveal that agro-industry is indeed an appropriate vehicle for pursuing the goals of growth promotion and income equality.

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    File URL: http://www.searca.org/ajad/archives/v-04/01/ajad_v4_n1_fatah.pdf
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    Bibliographic Info

    Article provided by Southeast Asian Regional Center for Graduate Study and Research in Agriculture in its journal Asian Journal of Agriculture and Development.

    Volume (Year): 4 (2007)
    Issue (Month): 1 (June)
    Pages: 57-74

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    Handle: RePEc:sag:seajad:v:4:y:2007:i:1:p:57-74

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    Related research

    Keywords: agro-industry; Social Accounting Matrix (SAM); growth;

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    1. Adelman, Irma, 1984. "Beyond export-led growth," World Development, Elsevier, vol. 12(9), pages 937-949, September.
    2. Adelman, Irma, 1984. "Beyond export-led growth," CUDARE Working Paper Series 309, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    3. Anderson, Kym, 1987. "On why agriculture declines with economic growth," Agricultural Economics, Blackwell, vol. 1(3), pages 195-207, October.
    4. Timothy C. Sargent & Edgard R. Rodriguez, 2000. "Labour or Total Factor Productivity: Do We Need to Choose?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 41-44, Fall.
    5. John M. Antle, 1999. "The New Economics of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 993-1010.
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