Agriculture in Portugal: linkages with industry and services
We investigate the links between agriculture and non-agricultural sectors in Portugal by assessing the existence of long-run relationships and causality among the three main sectors of activity in terms of value added and labour productivity using a VAR model for the period 1970-2006. Agricultural value added is found to be both weakly and strongly exogenous so it exerted no influence in the other sectors expansion nor was it influenced by their growth. The results with labour productivity show that productivity gains in services and industry feedback into productivity growth in agriculture, although the link is weaker in the industry case. Portuguese decision makers believe that restoring agricultural production plays an important role in overcoming the country’s current difficulties. However, they need to pay more attention to the potential synergies between agricultural and non-agricultural sectors, and provide agriculture with the necessary technological and organizational capabilities to benefit from industry and services expansion. Our results indicate that this does not seem to have happened in the past, a situation that should be improved in order to restore agricultural production and promote overall growth.
|Date of creation:||Jan 2014|
|Publication status:||Published in Review of Agricultural and Environmental Studies 95(4): 437-471, 2014.|
|Contact details of provider:|| Postal: Av. Dias da Silva 165; 3004-512 Coimbra|
Fax: + 351 239 40 35 11
Web page: http://www.uc.pt/en/feuc/gemf/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501, December.
- Lains, Pedro, 2003. "New wine in old bottles: Output and productivity trends in Portuguese agriculture, 1850 1950," European Review of Economic History, Cambridge University Press, vol. 7(01), pages 43-72, April.
- Diego Restuccia & Dennis Tao Yang & Xiaodong Zhu, 2003.
"Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis,"
diegor-03-01, University of Toronto, Department of Economics.
- Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 234-250, March.
- Diego Restuccia & Dennis Tao Yang & Xiaodong Zhu, 2007. "Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis," Working Papers e07-3, Virginia Polytechnic Institute and State University, Department of Economics.
- Margarida Duarte & Diego Restuccia, 2007.
"The structural transformation and aggregate productivity in Portugal,"
Portuguese Economic Journal,
Springer;Instituto Superior de Economia e Gestao, vol. 6(1), pages 23-46, April.
- Margarida Duarte & Diego Restuccia, 2006. "The Structural Transformation and Aggregate Productivity in Portugal," Working Papers tecipa-261, University of Toronto, Department of Economics.
- Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, 06.
- Ester Gomes da Silva & Aurora A.C. Teixeira, 2006.
"Surveying structural change: seminal contributions and a bibliometric account,"
FEP Working Papers
232, Universidade do Porto, Faculdade de Economia do Porto.
- Silva, Ester G. & Teixeira, Aurora A.C., 2008. "Surveying structural change: Seminal contributions and a bibliometric account," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 273-300, December.
- N. Gemmell & T. A. Lloyd & M. Mathew, 2000. "Agricultural Growth and Inter-Sectoral Linkages in a Developing Economy," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 353-370.
- Antonio Andreoni, 2011. "Manufacturing Agrarian Change - Agricultural production, inter-sectoral learning and technological capabilities," DRUID Working Papers 11-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-275, March.
- Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
- Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, 07.
- Jens J. Krüger, 2008. "Productivity And Structural Change: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 330-363, 04.
- Lains, Pedro & Santos Pereira, Álvaro, 2010. "From an agrarian society to a knowledge economy : Portugal, 1950-2010," IFCS - Working Papers in Economic History.WH wp10-09, Universidad Carlos III de Madrid. Instituto Figuerola.
- Fiess, Norbert M. & Verner, Dorte, 2001. "Intersectoral dynamics and economic growth in Ecuador," Policy Research Working Paper Series 2514, The World Bank.
- Kanwar, Sunil, 2000.
"Does the Dog Wag the Tail or the Tail the Dog? Cointegration of Indian Agriculture with Nonagriculture,"
Journal of Policy Modeling,
Elsevier, vol. 22(5), pages 533-556, September.
- Sunil Kanwar, 1996. "Does The Dog Wag The Tail Or The Tail The Dog? Cointegration Of Indian Agriculture With Non-Agriculture," Working papers 35, Centre for Development Economics, Delhi School of Economics.
- Johansen, Søren & Juselius, Katarina, 1992. "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the UIP for UK," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 211-244.
- Niels‐Hugo Blunch & Dorte Verner, 2006. "Shared Sectoral Growth Versus the Dual Economy Model: Evidence from Côte d'Ivoire, Ghana, and Zimbabwe," African Development Review, African Development Bank, vol. 18(3), pages 283-308.
- Shujie Yao, 1994. "Cointegration analysis of agriculture and non-agricultural sectors in the Chinese economy 1952-92," Applied Economics Letters, Taylor & Francis Journals, vol. 1(12), pages 227-229.
When requesting a correction, please mention this item's handle: RePEc:gmf:wpaper:2014-04.. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Seiça)
If references are entirely missing, you can add them using this form.