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The Role of Agriculture in Economic Growth: A Comparison of Mediterranean and Northern Views in Europe

Author

Listed:
  • Ioanna Apostolidou

    (Aristotle University of Thessaloniki, School of Agriculture, Dept. of Agricultural Economics, 54124, Thessaloniki, Greece)

  • Achilleas Kontogeorgos

    (University of Patras, Department of Business Administration of Food and Agricultural Enterprises, 30100, Agrinio, Greece)

  • Anastasios Michailidis

    (Aristotle University of Thessaloniki, School of Agriculture, Dept. of Agricultural Economics, 54124, Thessaloniki, Greece)

  • Efstratios Loizou

    (Technological Educational Institution of Western Macedonia, Dept. of Agricultural Products Marketing and Quality Control, Terma Kontopoulou, 53100, Florina, Greece)

Abstract

The main objective of this paper is to identify the causal relationship that exists between agricultural value added per worker and Gross Domestic Product per capita in Europe. More specifically, the role of agriculture in economic growth is examined with special emphasis to the differences and similarities among Mediterranean and Northern countries. In order to examine short-run and long-run relationships, recent methods of linear co-integration are employed while the role of agricultural value added in economic growth is also examined by Granger causality tests. Results show a bi-directional relationship between agricultural value added and economic growth in the northern EU countries and only in one Mediterranean country. From a policy point of view, this relationship is of crucial importance since it can facilitate successful economic decisions. Taking into consideration that the role of agriculture in economic growth is an issue that always attracts the interest of scholars, this research could be prove extremely interesting and useful. Especially for this period of economic crisis, when the whole growth approach is reexamined and reevaluated, the research findings provide evidence that agriculture can lead as an engine of growth in several EU countries and can play stabilizer's role in the whole EU economy.

Suggested Citation

  • Ioanna Apostolidou & Achilleas Kontogeorgos & Anastasios Michailidis & Efstratios Loizou, 2014. "The Role of Agriculture in Economic Growth: A Comparison of Mediterranean and Northern Views in Europe," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 7(3), pages 81-102, December.
  • Handle: RePEc:tei:journl:v:7:y:2014:i:3:p:81-102
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    References listed on IDEAS

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    More about this item

    Keywords

    Agricultural value-added; GDP; Causality; Co-integration;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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