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Does Agricultural Growth Cause Manufacturing Growth?

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  • Abdulaziz B. Shifa

Abstract

type="main" xml:id="ecca12142-abs-0001"> The role of agricultural development for industrialization is central to several theories of economic development and policy. However, empirically assessing the impact of agricultural growth on manufacturing growth is challenging because of endogeneity concerns. To address the identification challenge, I use random weather variations to instrument agricultural growth. The instrumental variable estimations show that agricultural growth has a significant positive impact on manufacturing growth. I discuss the empirical implications for efficiency of the manufacturing sector and the role of agriculture in Africa's industrialization.

Suggested Citation

  • Abdulaziz B. Shifa, 2015. "Does Agricultural Growth Cause Manufacturing Growth?," Economica, London School of Economics and Political Science, vol. 82, pages 1107-1125, December.
    • Handle: RePEc:bla:econom:v:82:y:2015:i::p:1107-1125
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    File URL: http://hdl.handle.net/10.1111/ecca.2015.82.issue-s1
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    Cited by:

    1. de Souza, Joao Paulo A., 2014. "Growth Complementarity Between Agriculture and Industry: Evidence from a Panel of Developing Countries," UMASS Amherst Economics Working Papers 2014-11, University of Massachusetts Amherst, Department of Economics.
    2. Irandoust, Manuchehr, 2022. "Industrial growth versus agricultural growth in eight post-communist countries," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 529-537.
    3. Joseph Mawejje & Ezra Francis Munyambonera, 2016. "Tax Revenue Effects of Sectoral Growth and Public Expenditure in Uganda," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 538-554, December.

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