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Does agriculture contribute to economic growth? Some empirical evidence

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  • Hunter Humphries
  • Stephen Knowles

Abstract

This paper augments the Solow - Swan model of economic growth to include the share of the labour force working outside the agricultural sector as a labour augmenting variable in the aggregate production function. The cross-country empirical results suggest that transferring labour from the agricultural sector to other sectors of the economy is associated with economic growth. This result is robust to using instrumental variables to control for the potential endogeneity of the relative size of the agricultural labour force.

Suggested Citation

  • Hunter Humphries & Stephen Knowles, 1998. "Does agriculture contribute to economic growth? Some empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 775-781.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:775-781
    DOI: 10.1080/000368498325471
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    References listed on IDEAS

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    1. Clark, Todd E, 1997. "Cross-country Evidence on Long-Run Growth and Inflation," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 70-81, January.
    2. Thorsten Wichmann, 1996. "Technology Adoption in Agriculture and Convergence across Economies," Berlecon Research Papers 0002, Berlecon Research.
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    Cited by:

    1. Chebbi, Houssem Eddine & Lachaal, Lassaad, 2007. "Agricultural Sector and Economic Growth in Tunisia: Evidence from Co-integration and Error Correction Mechanism," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9416, European Association of Agricultural Economists.
    2. Harris, Patrick, 2020. "Causal Factors of Australian Beef Exports," MPRA Paper 98766, University Library of Munich, Germany.
    3. Henneberry, Shida Rastegari & Khan, Muhhamad Ehsan & Piewthongngam, Kullapapruk, 2000. "An analysis of industrial-agricultural interactions: a case study in Pakistan," Agricultural Economics, Blackwell, vol. 22(1), pages 17-27, January.
    4. Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Journal of Economic Growth, Springer, vol. 11(3), pages 187-228, September.
    5. Sauk-Hee Park & Kwang-Min Moon, 2019. "The Economic Effects of Research-led Agricultural Development Assistance: The Case of Korean Programs on International Agriculture," Sustainability, MDPI, Open Access Journal, vol. 11(19), pages 1-15, September.
    6. Ansari, S. A. & Khan, W., 2018. "Relevance of Declining Agriculture in Economic Development of South Asian Countries: An Empirical Analysis," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).

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