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The Potentials of Agro-Industry for Growth Promotion and Equality Improvement in Indonesia

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  • Luthfi Fatah

    (Faculty of Agriculture, Lambung Mangkurat Unviversity)

Abstract

Despite its significant roles in accumulating and sustaining growth, agriculture's contribution to GDP and employment inevitably decreases as the economy grows. One possible strategy to promote the welfare of the agricultural sectors as well attain overall economic growth is by the development of agro-industry. Earlier research findings have contended that agro-industry improves income equality while still maintaining economic growth. This article uses empirical data in a Social Accounting Matrix (SAM) framework to verify these findings. The results reveal that agro-industry is indeed an appropriate vehicle for pursuing the goals of growth promotion and income equality.

Suggested Citation

  • Luthfi Fatah, 2007. "The Potentials of Agro-Industry for Growth Promotion and Equality Improvement in Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 4(1), pages 57-73, June.
    • Handle: RePEc:sag:seajad:v:4:y:2007:i:1:p:57-73
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