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Externalities in the agricultural export sector and economic growth: a developing country perspective

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  • Pineres, Sheila Amin Gutierrez de

Abstract

For years economists have ignored the diversity in agriculture and its potential to increase long run growth rates by enhancing a country's knowledge base. Non-traditional agriculture requires significant investments in the infrastructure and knowledge; and therefore, has the potential to increase long run growth rates. Policy makers in developing countries have tended to enact macroeconomic policies designed to enhance the manufacturing sector at the expense of the agricultural sector. A theoretical model is developed to explain the dynamics between two non-traditional export sectors and the long run economic growth of the country. The model illustrates that growth in highly perishable agricultural exports, not domestic production of manufactured goods, can potentially lead to higher long run growth rates. The model is applied to the fruit and flower industries in Colombia to bring forth an example with real world relevance. ©1999 Elsevier Science B.V. All rights reserved.

Suggested Citation

  • Pineres, Sheila Amin Gutierrez de, 1999. "Externalities in the agricultural export sector and economic growth: a developing country perspective," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 21(3), December.
  • Handle: RePEc:ags:iaaeaj:175197
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    File URL: http://purl.umn.edu/175197
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    References listed on IDEAS

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    1. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
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    13. Mendez, Jose A., 1991. "The development of the Colombian cut flower industry," Policy Research Working Paper Series 660, The World Bank.
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    Cited by:

    1. Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, July.

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