Agriculture and national welfare around the world: causality and international heterogeneity since 1960
Calculations of marginal welfare effects suggest that agricultural development has had important positive effects on national welfare, especially in developing countries. Latin American and Caribbean countries have also benefited from agricultural growth, but non-agricultural production has had marginal welfare effects that are greater in magnitude than those provided by agricultural activities. In contrast, the industrialized, high-income countries experienced marginal welfare gains from non-agricultural activities that are much greater than those derived from agriculture, whose impact is actually negative. These calculations of marginal welfare effects across regions depend on econometric estimates of elasticities linking agricultural and nonagricultural economic activities to four elements in a national welfare function: national GDP per capita, average income of the poorest households within countries, environmental outcomes concerning air and water pollution and deforestation, and macroeconomic volatility. The econometric analyses are motivated by theoretical treatments of key issues. The empirical models are estimated with various econometric techniques that deal with issues of causality and international heterogeneity.
|Date of creation:||01 Feb 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
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.:
- Klinger, Bailey & Lederman, Daniel, 2004. "Discovery and development : an empricial exploration of"new"products," Policy Research Working Paper Series 3450, The World Bank.
- David I. Stern, 2003.
"The Rise and Fall of the Environmental Kuznets Curve,"
Rensselaer Working Papers in Economics
0302, Rensselaer Polytechnic Institute, Department of Economics.
- Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
- Johnson, D Gale, 1997. "Agriculture and the Wealth of Nations," American Economic Review, American Economic Association, vol. 87(2), pages 1-12, May.
- Larson, Donald & Mundlak, Yair, 1997.
"On the Intersectoral Migration of Agricultural Labor,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 45(2), pages 295-319, January.
- Larson, Donald & Mundlak, Yair, 1995. "On the intersectoral migration of agricultural labor," Policy Research Working Paper Series 1425, The World Bank.
- Cole, Matthew A., 2003. "Development, trade, and the environment: how robust is the Environmental Kuznets Curve?," Environment and Development Economics, Cambridge University Press, vol. 8(04), pages 557-580, October.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3499. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.