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Structural Changes in Agriculture: Production Linkages and Agricultural Demand-Led Industrialization

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  • Vogel, Stephen J

Abstract

This paper analyzes agriculture's forward and backward multipliers in order to assess the appropriateness of an agricultural-demand-led-industrialization strategy. Cross-section regressions are run on social accounting matrix multipliers and their decompositions obtained from a data set consisting of twenty-seven social accounting matrices. Agriculture's strong backward linkage to nonagriculture makes it a 'leading sector' in A. O. Hirschman's big-push industrialization strategy. The decompositions of these multipliers illuminate the crucial, indirect contributions made by household demands to agricultural production linkages. The potential of the linkages make agricultural-demand-led industrialization an attractive policy alternative for countries at low levels of development. Copyright 1994 by Royal Economic Society.

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  • Vogel, Stephen J, 1994. "Structural Changes in Agriculture: Production Linkages and Agricultural Demand-Led Industrialization," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 136-156, January.
  • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:1:p:136-56
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    Cited by:

    1. Gustavo Anríquez & Silvio Daidone, 2008. "Linkages between Farm and Non-Farm Sectors at the Household Level in Rural Ghana A consistent stochastic distance function approach," Working Papers 08-01, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    3. Olfert, R. & Berdegué, J. & Escobal, J. & Jara, B. & Modrego, F., 2011. "Places for Place-Based Policies," Working papers 079, Rimisp Latin American Center for Rural Development.
    4. I. Omosebi Ayeomoni & Saheed A. Aladejana, 2016. "Agricultural Credit and Economic Growth Nexus. Evidence from Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 146-158, April.
    5. Paula Bustos & Bruno Caprettini & Jacopo Ponticelli, 2016. "Agricultural Productivity and Structural Transformation: Evidence from Brazil," American Economic Review, American Economic Association, vol. 106(6), pages 1320-1365, June.
    6. Md., Samsur Jaman, 2014. "Monitoring Structural Changes in NER: -An Empirical Analysis of Mizoram," MPRA Paper 60270, University Library of Munich, Germany.
    7. Gustavo Anríquez & Kostas Stamoulis, 2007. "Rural Development and Poverty Reduction; Is Agriculture Still the Key?," Working Papers 07-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    8. Gustavo Anríquez & Silvio Daidone, 2010. "Linkages between the farm and nonfarm sectors at the household level in rural Ghana: a consistent stochastic distance function approach," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 51-66, January.
    9. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    10. Diao, Xinshen & Fekadu, Belay & Haggblade, Steven & Seyoum Taffesse, Alemayehu & Wamisho, Kassu & Yu, Bingxin, 2007. "Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models," IFPRI discussion papers 695, International Food Policy Research Institute (IFPRI).
    11. Randy Stringer & Prabhu Pingali, 2004. "Agriculture's Contributions to Economic and Social Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 1-5.
    12. Joko Mariyono, 2009. "Technological and Institutional Changes in the Indonesian Rice Sector: From Intensification to Sustainable Revitalization," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(2), pages 125-144, December.
    13. Gustavo Anríquez & Kostas Stamoulis, 2007. "Rural development and poverty reduction: is agriculture still the key?," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 5-46.
    14. Steven Lim & Derek Harland, 2001. "Dynamic Modelling of a Three-Sector Transitional Economy," Working Papers in Economics 01/01, University of Waikato.
    15. Omamo, Steven Were & Diao, Xinshen & Wood, Stanley & Chamberlin, Jordan & You, Liangzhi & Benin, Samuel & Wood-Sichra, Ulrike & Tatwangire, Alex, 2006. "Strategic priorities for agricultural development in Eastern and Central Africa:," Research reports 150, International Food Policy Research Institute (IFPRI).
    16. Richard Hornbeck & Pinar Keskin, 2015. "Does Agriculture Generate Local Economic Spillovers? Short-Run and Long-Run Evidence from the Ogallala Aquifer," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 192-213, May.

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