Econometric Models of Agriculture in OECD Countries: Production, Income, and Agrarian Employment in Spain, France, Japan, and the Usa, 1965-99
We present a general view of agricultural employment in four OECD countries: Spain, France, Japan and the USA during the period 1900-1999 and we analyse the effects of the technological transformation this sector underwent during the period 1965-99, by means of an econometric model for agrarian employment and real valued added. A pooled regression is selected after testing the homogeneity of parameters in the four countries. The conclusions point to the important diminution in relative prices of agriculture as the main explanatory variable which accounts both for employment decrease and stagnation, or decline, in agricultural real income, in spite of high increases in real production. The study of this is important as many developing countries are now facing such a socio-economic transformation. There is a need for a change in order to foster analyses of income, prices and other important variables related with the quality of life both of farmers and consumers.
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