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On the Decline of Agriculture in Developing Countries: A Reinterpretation of the Evidence

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  • Punyasavatsut, Chaiyuth

    (Thammasat U)

  • Coxhead, Ian

    (U of Wisconsin)

Abstract

Conventional explanations for the relative decline of agriculture in developing countries stress secular, demand-side phenomena, specifically Engel effects. This view has been challenged by quantitative analyses emphasizing supply-side effects such as differences in factor endowment growth rates. The innovation in this paper is to investigate the extent to which agricultural decline is in fact generated by policies rather than by fundamental preference or endowment shifts. Econometric results using Thai data indicate that policies are strongly influential, but that the direction and strength of influence varies over time. We explore implications for the interpretation of past development strategies and future policy formation.

Suggested Citation

  • Punyasavatsut, Chaiyuth & Coxhead, Ian, 2002. "On the Decline of Agriculture in Developing Countries: A Reinterpretation of the Evidence," Staff Paper Series 457, University of Wisconsin, Agricultural and Applied Economics.
    • Handle: RePEc:ecl:wisagr:457
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    1. Salom�n Kalmanovitz & Enrique L�pez, 2003. "Patrones de Desarrollo y Fuentes de Crecimiento de la Agricultura," Borradores de Economia 3315, Banco de la Republica.
    2. Butzer, Rita & Larson, Donald F. & Mundlak, Yair, 2002. "Determinants Of Agricultural Growth In Thailand, Indonesia And The Philippines," Discussion Papers 14979, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    3. Pina, Gilson M. G., 2013. "Mudança estrutural e a relação entre os setores em Cabo Verde [Structural change and the sectoral linkage in Cape Verde]," MPRA Paper 46015, University Library of Munich, Germany.
    4. Pierre Berthelier & Anna Lipchitz, 2005. "Quel rôle joue l'agriculture dans la croissance et le développement ?," Revue Tiers Monde, Programme National Persée, vol. 46(183), pages 603-624.
    5. Mundlack, Yair & Larson, Donald F. & Butzer, Rita, 2002. "Determinants of agricultural growth in Indonesia, the Philippines, and Thailand," Policy Research Working Paper Series 2803, The World Bank.
    6. Esposti, Roberto, 2014. "On why and how agriculture declines," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 73-88.

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