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Agricultural Inter-Sectoral Linkages and Its Contribution to Economic Growth in the Transition Countries

Author

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  • Subramaniam, Vijay
  • Reed, Michael R.

Abstract

This 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.

Suggested Citation

  • Subramaniam, Vijay & Reed, Michael R., 2009. "Agricultural Inter-Sectoral Linkages and Its Contribution to Economic Growth in the Transition Countries," 2009 Conference, August 16-22, 2009, Beijing, China 51586, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51586
    DOI: 10.22004/ag.econ.51586
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    References listed on IDEAS

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    Cited by:

    1. Md. Sayemul Islam & Md. Asraf Mahmud Hasif & Nishat Sultana Ema & Hasneen Jahan, 2020. "Role of Agriculture and Manufacturing Sectors in the Economic Growth of Bangladesh and India: An ARDL Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 23(78), pages 82-92, December,.
    2. Eze Simpson Osuagwu, 2020. "Empirical Evidence of a Long-Run Relationship Between Agriculture and Manufacturing Industry Output in Nigeria," SAGE Open, , vol. 10(1), pages 21582440198, January.
    3. P K MISHRA & Manmohan MALL & B B PRADHAN, 2017. "Economic Growth, Structural Change And Intersectoral Linkages In Saarc Economies," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 17(2), pages 75-88.
    4. durongkaveroj, wannaphong & Roongsaprangsee, chamaiporn, 2014. "Labor Movement and Economic Contribution : Evidence from Europe," MPRA Paper 55933, University Library of Munich, Germany.
    5. Anu Keshiro Toriola & Emmanuel Oladapo George & Walid Gbadebo Adebosin, 2021. "The Nexus Between Commodity Terms and National Terms of Trade of Sub-Sahara African Countries: Implication for Intersectoral Linkage," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 19(1), pages 79-98.

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