Agricultural Inter-Sectoral Linkages and Its Contribution to Economic Growth in the Transition Countries
AbstractThis study estimates an econometric model that incorporates the linkages among agriculture, manufacturing, service and trade sectors using a vector error correction model for Poland and Romania. Three cointegrating vectors for Poland and one for Romania confirm that the different sectors in the Poland and Romania moved together over the sample period, and for this reason, their growth rates are interdependent. The long-run relationship of industrial, service and trade sectors to agricultural sector were established, and the results show that the industrial sector in Poland contributes positively to the agricultural sector while the growing service sector shows mixed results. The results of Romania indicate that the industrial sector is detrimental to agriculture however, the service sector contributes positively. The short-run results show that the service sector is the most significant sector in the Polish economy and it contributes positively to all other sectors. However, growth in the industrial sector affects the other two sectors negatively. A similar effect is observed in the Romanian economy; however, the results are not significant. As expected, the role of agriculture in the short-run is not significant to the other sectors, but it made a positive impact on the industrial sector in Romania.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51586.
Date of creation: 2009
Date of revision:
Transition economy; Inter-sectoral growth linkages; Cointegration analysis; International Development; Research Methods/ Statistical Methods; P20; 041; C32;
Find related papers by JEL classification:
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
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