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Agricultural exports and economic growth in less developed countries

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  • P. J. Dawson

Abstract

This article examines the contribution of agricultural exports to economic growth in less developed countries (LDCs). A sources‐of‐growth equation is developed from a dual economy model where agricultural and nonagricultural sectors are both divided into export and nonexport subsectors. This is then estimated using panel data for 62 LDCs for 1974–1995. Results provide evidence that there are significant structural differences in economic growth between low, lower‐middle, and upper‐income LDCs. Investment in the agricultural export subsector has a statistically identical impact on economic growth as investment in the nonagricultural export subsector. The marginal productivities in nonexport subsectors are over 30% lower than those in respective export subsectors. From a policy perspective, the results suggest that export‐promotion policies should be balanced.

Suggested Citation

  • P. J. Dawson, 2005. "Agricultural exports and economic growth in less developed countries," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 145-152, September.
    • Handle: RePEc:bla:agecon:v:33:y:2005:i:2:p:145-152
    DOI: 10.1111/j.1574-0862.2005.00358.x
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    References listed on IDEAS

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    1. World Bank, 1991. "World Development Report 1991," World Bank Publications - Books, The World Bank Group, number 5974, April.
    2. Krueger, Anne O., 1990. "Perspectives on Trade and Development," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226454900.
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