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Does Agriculture Really Matter for Economic Growth in Developing Countries?


  • Titus O. Awokuse
  • Ruizhi Xie


In recent decades, the potential contribution of agriculture to economic growth has been a subject of much controversy among development economists. While some contend that agricultural development is a precondition to industrialization, others strongly disagree and argue for a different path. Taking advantage of recent developments in time series econometric methods, this paper re-examines the question of whether agriculture could serve as an engine of growth. Results from the empirical analysis provide strong evidence indicating that agriculture is an engine of economic growth. Furthermore, we find that trade openness has a positive effect on GDP growth.
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Suggested Citation

  • Titus O. Awokuse & Ruizhi Xie, 2015. "Does Agriculture Really Matter for Economic Growth in Developing Countries?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(1), pages 77-99, March.
  • Handle: RePEc:bla:canjag:v:63:y:2015:i:1:p:77-99

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    Cited by:

    1. Ogundari, Kolawole & Awokuse, Titus, 2016. "Assessing the Contribution of Agricultural Productivity to Food Security levels in Sub-Saharan African countries," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235730, Agricultural and Applied Economics Association.
    2. Shima'a Hanafy & Marcus Marktanner, 2015. "Sectoral FDI, Absorptive Capacity and Economic Growth — Empirical Evidence from Egyptian Governorates," MAGKS Papers on Economics 201537, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Benešová, Irena & Novotná, Zuzana & Šánová, Petra & Laputková, A., 2016. "Economic Comparison of Agricultural Sector of Eurasian Countries – Is There Any Potential for Development Through Economic Cooperation?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 0(Number 2), pages 1-13, June.
    4. Clarke, Neville & Bizimana, Jean-Claude & Dile, Yihun & Worqlul, Abeyou & Osorio, Javier & Herbst, Brian & Richardson, James W. & Srinivasan, Raghavan & Gerik, Thomas J. & Williams, Jimmy & Jones, Cha, 2017. "Evaluation of new farming technologies in Ethiopia using the Integrated Decision Support System (IDSS)," Agricultural Water Management, Elsevier, vol. 180(PB), pages 267-279.
    5. repec:ags:aolpei:276108 is not listed on IDEAS
    6. Moon, Wanki, 2012. "Conceptualizing Multifunctional Agriculture from a Global Perspective," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119751, Southern Agricultural Economics Association.
    7. repec:eee:jpolmo:v:40:y:2018:i:1:p:151-165 is not listed on IDEAS

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development


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