W. Khan, S. A. Ansari 1029 For citation: Khan, W. & Ansari, S. A. (2018). Does Agriculture Matter for Economic Growth of Uttar Pradesh (India)? Ekonomika Regiona [Economy of Region], 14(3), 1029-1037 doi 10.17059/2018-3-24 UDC 332.1 JEL: F63, P11, C22, C4, N95, O13, D64, E6 W. Khan, S. A. Ansari Aligarh Muslim University (Aligarh, India; e-mail:
[email protected]) DOES AGRICULTURE MATTER FOR ECONOMIC GROWTH OF UTTAR PRADESH (INDIA)? 1 Twenty-five years have passed since economic reform in India. It brought about many macroeconomic policy changes in the economy. Although these policy changes helped the manufacturing and services sec- tor to grow, agriculture did not get any direct benefits from economic reforms. It was assumed that it would get indirect benefits due to changes in exchange and trade policy, liberal industrial licensing system and re- duction in industrial protection, which would benefit tradable agriculture by ending discrimination against it and by turning the terms of trade in its favour. The present study examines the transformation in agricul- ture and basic contributory roles i. e. product, market, and factor contribution of agriculture in the economy of Uttar Pradesh. Further, a long run association and causal relation between agriculture and other economic sectors and sub-sectors are explored. An understanding of the relationship between agriculture and overall GDP growth becomes important from a policy maker’s perspective, as it would guide the decisions in allo- cating the scarce resources to attain growth and development. Results show that Product, market, and factor contribution has increased over the years.