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Accounting for agricultural decline with economic growth in Taiwan

Author

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  • Ling Sun
  • Lilyan E. Fulginiti
  • E. Wesley
  • F. Peterson

Abstract

In this paper, we develop an empirical model to decompose the evolution of the agricultural share of GDP into three components: price changes, factor endowment changes and technological change. Our results suggest that relative prices have a positive but small influence on the share of agriculture in GDP in both the long‐run and the short‐run. An increase in capital per unit of labor, on the other hand, is associated with a smaller agricultural share. Technical change has been biased in favor of the agricultural sector but this effect has been swamped by the magnitude of the input effects, in particular, the changes in the capital‐labor ratio.

Suggested Citation

  • Ling Sun & Lilyan E. Fulginiti & E. Wesley & F. Peterson, 2007. "Accounting for agricultural decline with economic growth in Taiwan," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 181-190, March.
    • Handle: RePEc:bla:agecon:v:36:y:2007:i:2:p:181-190
    DOI: 10.1111/j.1574-0862.2007.00197.x
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    References listed on IDEAS

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    1. Jacob L. Weisdorf, 2006. "From domestic manufacture to Industrial Revolution: long-run growth and agricultural development," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 264-287, April.
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    Cited by:

    1. Tey, (John) Yeong-Sheng, 2008. "The Relative Decline of Agriculture in China," MPRA Paper 15057, University Library of Munich, Germany.
    2. Wang, Sun Ling & Huang, Jikun & Wang, Xiaobing & Tuan, Francis, 2019. "Are China’s regional agricultural productivities converging: How and why?," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    3. Esposti, Roberto, 2014. "On why and how agriculture declines," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 73-88.
    4. Saenz, Mariana, 2010. "Structural Change in the Colombian Coffee Sector: 1975-2007," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61462, Agricultural and Applied Economics Association.
    5. Roberto ESPOSTI, 2007. "On the Decline of Agriculture. Evidence from Italian Regions in the Post-WWII Period," Working Papers 300, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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