DOCSLIB.ORG

Agricultural Technology, Productivity and Employment: Policies for Poverty Reduction

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Agricultural Technology, Productivity and Employment: Policies for Poverty Reduction View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics Agrekon, Vol 44, No 1 (March 2005) Thirtle, Piesse & Gouse Agricultural technology, productivity and employment: Policies for poverty reduction C Thirtle1, J Piesse2 & M Gouse3 I have cherished the ideal of a democratic and free society in which all persons live together in harmony with equal opportunities. It is an ideal, which I hope to live for, and to see realised. But my lord, if needs be, it is an ideal for which I am prepared to die. Nelson Mandela, 20th April 1964, Johannesburg Abstract This paper begins by arguing that agricultural economics has an important contribution to make to the economic transition of the new democratic South Africa. Policies are required to reduce unemployment, poverty and inequality, but does the work of agricultural economists provide the policy makers with the information necessary to make the correct choices? In this context, we update our recent work on technology, efficiency and productivity in South African agriculture, for both the commercial and smallholder sub-sectors. For the commercial sector, this means extending the total factor productivity index and estimates of the demand for labour. For the smallholder sector, there are new results on the impacts of GM cotton and white maize on output and employment. However, this piecemeal approach treats the two sectors as entirely separate, when they are actually interdependent. Thus, a Ricardian model of dualistic agriculture is used to explain the historical development of dualism in agriculture, especially how the native agriculturalists were impoverished by the colonists. Then this model is adapted to resemble the Harris-Todaro model of urban unemployment is order to represent the present dual agricultural sector. This allows the current policy options to be compared, although real data is needed to estimate the relationships and so the full analysis remains incomplete. 1. Introduction This paper investigates the contribution that agricultural economics needs to make if Nelson Mandela’s ideal is to be realised. Economic apartheid will not end until reasonable opportunities and incomes are available to the mass of 1 Professor, Department of Environmental Science and Sustainable Development, Imperial College London and Extraordinary Professor, Department of Agricultural Economics, Extension and Rural Development, University of Pretoria. 2 Reader, School of Social Science and Public Policy, King’s College London and Extraordinary Professor, University of Stellenbosch. 3 Researcher, Department of Agricultural Economics, Extension and Rural Development, University of Pretoria. 37 Agrekon, Vol 44, No 1 (March 2005) Thirtle, Piesse & Gouse the population rather than being the privilege of the few. Recent data shows that the problems are still enormous. The Labour Force Survey reported by Statistics South Africa put the September 2002 rate of unemployment at 41.8% according to the broad definition (wanting work) and 30.5% by the narrow definition of actively seeking a job. The proportion of the total population classified as living in poverty in 1995 was 50%, but as Table 1 shows, the figure was 70% for the rural population and the disparity between urban and rural dwellers is even more pronounced with respect to access to facilities. There was also a huge racial disparity, with 1% of whites below the poverty line, as compared with 61% of Africans and a pronounced gender bias (May, Woolard & Klasen, 1998). About 60% of female-headed households were poor, as compared with 30% with male heads, but some of this reflects the rural location of a greater proportion of female-headed households. Finally, with respect to inequality, the Gini coefficient is around 0.6, which is as high as the most unequal societies in Latin America (McDonald & Piesse, 1999). Table 1: Rural–urban distribution of poverty and access to basic services (1995) Location Population share (%) Poverty share (%) Poverty rate (%) Rural 50.4 71.6 70.9 Urban 49.6 28.4 28.5 Total 100 100 49.9 In dwelling facilities Service Running water Sanitation Electricity Telephone Urban (%) 74.1 65.5 82.4 48.4 Rural (%) 16.8 10.9 21.1 7.5 Source: McDonald and Piesse (1999), adapted from May, Woolard and Klasen (1998). The next section considers the role of agricultural economists and how we can contribute to poverty reduction. Section three reviews and updates the work on productivity in commercial agriculture with emphasis on maintaining employment as wages rise. In South African agriculture, the existence of a semi-subsistence sector may allow poverty to persist in peaceful coexistence with healthy growth of per capita incomes in the rest of the economy. Thus, section four similarly updates our work on technological change in the semi- subsistence sector, with emphasis on genetically modified crops. Section five considers the issue of dualism, showing that the two agricultural sectors need to be modelled together so that policies can be compared. 2. Why agricultural economics matters Forty years after Mandela’s trial, his ideal is closer to realisation than all but the most optimistic would have expected forty years ago. But as Fidel Castro is supposed to have said after his guerrillas had entered Havana and Batista had 38 Agrekon, Vol 44, No 1 (March 2005) Thirtle, Piesse & Gouse fled, “OK, that was the easy part, now we have the tougher job of running the country”. Within a few years the Cuban economy was in ruins - Che Guevara, may have been a good communist but he was a lousy economist.4 South Africa has also had a revolution, but unless we, as members of LEVSA, do better than Guevara, Mandela’s vision will not become a reality. South Africa is the world’s social science laboratory, so we are in the right place at the right time, with everything to play for. In the European Union, agricultural economists simply add to butter mountains and wine lakes that cripple the taxpayer. In the USA, they increase the exported surpluses that lower world prices and destroy developing country agriculture. However, in South Africa it is the poor majority who will gain most from agricultural growth, which increases the incomes of smallholders. At the same time, growth in the commercial sector leads to lower food prices, benefiting the urban poor. The new South Africa has to succeed in reducing the current levels of unemployment, inequality and poverty as soon as possible, while in the longer run equality of opportunity and economic freedom requires education. 2.1 What do we contribute? What role do agricultural economists play? The stylised facts are quite simple. We obviously generate information on economic relationships. For instance, we estimate price elasticities for inputs and outputs, which should allow policy makers to know what the results of policies such as taxes and minimum wage legislation. But there is another function. The R&D work of agricultural scientists in public institutions (i.e. the Agricultural Research Council (ARC) and the universities) and private companies (such as multinationals like Monsanto and Delta and Pineland) produces new biological, land saving, technologies that increase yields. Mechanical technology, that saves labour, has always been much more the province of private manufacturers, such as the tractor producers. These technologies are taken from the trial plot or the engineering laboratory to the farmers, either by public sector extension agents 4 Guevara served as chief of the Industrial Department of the National Institute of Agrarian Reform, President of the National Bank of Cuba and Minister of Industry, which put him in a fine position to wreck the economy. His performance would not have surprised the Russians, who had a story about the May Day parade. The massive arrays of troops, tanks, guns, rockets and aircraft are followed by a couple of dozen paunchy, shambling middle aged men in business suits. “What on earth are they doing there”, asked a foreign observer and his Russian companion replied, “Ah, those are economists – you cannot imagine their awesome destructive power”. 39 Agrekon, Vol 44, No 1 (March 2005) Thirtle, Piesse & Gouse or company sales staff. This diffusion process imposes further lags and uses further real resources, but hopefully the result is improved productivity. The agricultural economist has no role in this process except evaluation, so we are practically accountants.5 Is this worth doing? We are increasingly sure that it is. We do know that throughout history, nations with accounting systems do better than those without, provided that the accounting system is informative. Michael Lipton (1989) has long argued the reason behind Africa’s failures. The underlying problem has been that the data and measurement of economic performance has been too poor to guide policy.6 2.2 From data, to analysis, to policy: Can we reduce unemployment, inequality and poverty? Data is the input for the measurement of economic activity, followed or accompanied by causal explanation. Griliches (1994) makes the case that even in the USA, data is the constraint limiting progress in the study of R&D and productivity. Given data, the economists have to perform their key function, which is to inform the policy process in order to make it more effective. The economist has no business dictating the goals of economic activity (Robbins, 1935), but still has a role to play in the policy process by ensuring that the policies are efficient in obtaining the democratically identified objectives. This means accurate targeting and attributes such as incentive compatibility. They may also play a role in implementation, for example in extension. But there is no positive marginal product unless there is an improvement in social welfare. Ruttan (1982) makes an issue of articulation. The system is only as good as its weakest link and the segments must fit together.
Load more

Recommended publications
  • The Economic Contribution of Agriculture and Forestry Production and Processing in Mississippi: an Input-Output Analysis
    The Economic Contribution of Agriculture and Forestry Production and Processing in Mississippi: An Input-Output Analysis Agriculture and forestry are major components of Data for the direct effects and estimation of the indirect Mississippi’s economy. In 2014 alone, agriculture and and induced effects came from a well-known input-output forestry production and processing sectors directly modeling system called Impact for Planning and Analysis, accounted for 113,934 jobs paying $3.04 billion in wages or IMPLAN, software that is updated annually by the and salaries (Table 1). In addition, agriculture and forestry IMPLAN Group LLC (2015). IMPLAN is a computerized related sectors also directly accounted for $26.4 billion in database and modeling system for constructing regional sales with a value-added generation of $8.4 billion. Clearly, economic accounts and regional input-output tables. The agriculture and forestry provide a major contribution to IMPLAN 536 sector input-output model is based primarily the Mississippi economy. on data from the U.S. Bureau of Economic Analysis, U.S. Yet, this contribution has a much larger effect on Bureau of Labor Statistics, U.S. Census Bureau, U.S. the Mississippi economy. A larger total contribution Department of Agriculture, and U.S. Geological Survey. results when also accounting for the stimulative effect This study used an input-output model constructed with of spending by the employees of the agriculture and the most recent 2014 IMPLAN data. forestry industries. This report provides an estimate of the The total economic contribution of agriculture and economic contribution of agriculture and forestry sectors forestry (i.e.
    [Show full text]
  • Economics of Competition in the U.S. Livestock Industry Clement E. Ward
    Economics of Competition in the U.S. Livestock Industry Clement E. Ward, Professor Emeritus Department of Agricultural Economics Oklahoma State University January 2010 Paper Background and Objectives Questions of market structure changes, their causes, and impacts for pricing and competition have been focus areas for the author over his entire 35-year career (1974-2009). Pricing and competition are highly emotional issues to many and focusing on factual, objective economic analyses is critical. This paper is the author’s contribution to that effort. The objectives of this paper are to: (1) put meatpacking competition issues in historical perspective, (2) highlight market structure changes in meatpacking, (3) note some key lawsuits and court rulings that contribute to the historical perspective and regulatory environment, and (4) summarize the body of research related to concentration and competition issues. These were the same objectives I stated in a presentation made at a conference in December 2009, The Economics of Structural Change and Competition in the Food System, sponsored by the Farm Foundation and other professional agricultural economics organizations. The basis for my conference presentation and this paper is an article I published, “A Review of Causes for and Consequences of Economic Concentration in the U.S. Meatpacking Industry,” in an online journal, Current Agriculture, Food & Resource Issues in 2002, http://caes.usask.ca/cafri/search/archive/2002-ward3-1.pdf. This paper is an updated, modified version of the review article though the author cannot claim it is an exhaustive, comprehensive review of the relevant literature. Issue Background Nearly 20 years ago, the author ran across a statement which provides a perspective for the issues of concentration, consolidation, pricing, and competition in meatpacking.
    [Show full text]
  • The Distributional Impacts of Agricultural Programs*
    II Division of Agricultural Sciences UNIVERSITY OF j CA~IFORNIA !". ~- .. - Working Paper No. 194 THE DISTRIBUTIONAL IHPACTS OF AGRICULTIJRAL PROGRAMS by Gordon C. Rausser and David Zilberman QIANNINI ,.OUNDAT10NO,. ACJltJCULTURAL ECONOMICS LIBRARY MAR 1 U1982 Financial support under Project No. 58-3J23-1-0037X is gratefully apprecia t ed . California Agricultural Experiment Station Giannini Foundation of Agricultural Economics March, 1982 ---.,All : " Giannini FDN Library , I1\\1 ~ \\111 \\1 II lllll 11\l1 IllIl III IIII 0052 19 THE DISTRIBUTIONAL IMPACTS OF AGRICULTURAL PROGRAMS* 1. Introduction Scholars of all persuasions agree that economic policies emanating from our political system aim at slicing the pie in a particular fashion and/or increasing its size. As a result~ economists interested in policy analysis must not limit their analysis to efficiency issues but must also investigate equity implications. In the latter regard~ . it is our view that much remains to be accomplished by our profession on both conceptual and empirical fronts. Our efforts in developing methodologies and rmodels capable of analyzing distributional issues should intensify. The purpose of this paper is to present several new ap- pro aches for analyzing distributional impacts of agricultural policies. To gain some perspective on the potential value of these approaches~ we have to realize their role within the process of modeling for policy analysis. Figure 1 (Rausser and Hochman, 1979~ p. 22) depicts a graphical presentation of this process. The process outlined in this figure is useful for prescriptive or normative analysis--aiding policymakers in evaluating alternatives and selecting more nearly optimal poli- cies. It can also be used to structure positive analysis in order to improve our understanding of political economics of • 2.
    [Show full text]
  • Nathalie Lavoie
    NATHALIE LAVOIE Department of Resource Economics University of Massachusetts Amherst 80 Campus Center Way Amherst, MA 01003 Phone: (413) 545-5713 Fax: (413) 545-5853 [email protected] EDUCATION Ph.D., Agricultural and Resource Economics, University of California, Davis, CA. Fall 2001. Dissertation: Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports. Advisor: Professor Richard Sexton. M.Sc., Agricultural Economics, University of Saskatchewan, Saskatoon, Canada. Fall 1996. Thesis: Viability of a Voluntary Price Pool Within a Cash Market. Advisors: Professors Murray Fulton and James Vercammen. B.Sc., Agricultural Economics, McGill University, Montreal, Canada, Spring 1994. FIELDS OF INTEREST Industrial Organization, International Trade, Agricultural Markets, Agricultural Policy. EMPLOYMENT AND RESEARCH EXPERIENCE Associate Professor, Department of Resource Economics, University of Massachusetts, Amherst, MA, 09/08 – current. Visiting Scholar, Institut National de Recherche Agronomique (INRA), Laboratoire Montpelliérain d’Économie Théorique et Appliquée (LAMETA), Université de Montpellier 1, Montpellier, France, 01/12-06/12. Assistant Professor, Department of Resource Economics, University of Massachusetts, Amherst, MA, 09/01 – 08/08. Instructor, Department of Resource Economics, University of Massachusetts, Amherst, MA, 08/00 – 08/01. Visiting Scholar, Institut National de Recherche Agronomique (INRA), Midi-Pyrénée School of Economics, Université des Sciences Sociales of Toulouse,
    [Show full text]
  • Introduction to Agricultural Economics
    INTRODUCTION TO AGRICULTURAL ECONOMICS Definitions of Agricultural Economics by various Authors • Agricultural economics is an applied field of economics concerned with the application of economic theory in optimizing the production and distribution of food and fibre—a discipline known as agricultural economics. Definitions contd. •Prof. Gray defines agricultural economics, “as the science in which the principles and methods of economics are applied to the special conditions of agricultural industry.” •No doubt both these definitions are wider in scope, but these are not explanatory and are characterised by vagueness unsettled. Definitions contd. • Prof. Hubbard has defined agricultural economics as, “the study of relationship arising from the wealth-getting and wealth-using activity of man in agriculture.” • This definition is based on Prof. Ely’s definition of economics and is mere akin to Marshall’s conception of economic activities and therefore it is also limited in scope. Definitions contd. • According to Lionel Robbins, economics deals with the problems of allocative efficiency i.e. choice between various alternative uses-particularly when resources are scarce— to maximize some given ends. • Thus it provides analytical techniques for evaluating different allocations of resources among alternative uses Prof. Taylor defines agricultural economics in Robbinsian tone. Definitions contd. • To use his words, “Agricultural economics treats of the selection of land, labour, and equipment for a farm, the choice of crops to be grown, the selection of livestock enterprises to be carried on and the whole question of the proportions in which all these agencies should be combined. • These questions are treated primarily from the point of view of costs and prices.” Definitions contd.
    [Show full text]
  • Implementing and Maintaining Neoliberal Agriculture in Australia
    IMPLEMENTING AND MAINTAINING NEOLIBERAL AGRICULTURE IN AUSTRALIA. PART II STRATEGIES FOR SECURING NEOLIBERALISM Bill Pritchard School of Geosciences, University of Sydney Introduction The formal attachment to this [multilateral agricultural liberalisation] agenda has displayed a quality akin to religious fervour, unqualified by the details of experience (Jones 1994:1). uring the 1960s and 1970s there was a seismic shift in the intellectual environment of the D discipline of agricultural economics in Australia. The discipline as a whole became more centred on the influence of the Chicago School paradigm, which emphasised the social benefits of free markets. By the 1980s, these views had inculcated key policy arenas within the Australian Government. In combination with a reformist Labour Party administration which sought to challenge the policy authority of National Party influence in rural affairs, 1 these perspectives gained centrality as a guiding vision for public policy interests in agriculture. The first instalment of this two-part series of articles (Pritchard, 2005a) detailed how, by the end of the 1990s, this intellectual juggernaut had radically transformed the relationships between the state and market within Australia’s rural economy. In this article, attention is focused to the issue of how these policy prescriptions have been maintained and justified. Such a focus is extremely timely, coming approximately ten years after the formation of the WTO. The Australian Government’s advocacy of market liberalisation in agriculture is extremely influential within that body. In her history of Australia and the world trading system, for example, Capling (2001:2) argues “Australia has wielded far more influence in multilateral trade institutions than is warranted by its size and power in the global economy”.
    [Show full text]
  • Market Power, Misconceptions, And
    American Journal of Agricultural Economics Advance Access published November 24, 2012 MARKET POWER,MISCONCEPTIONS, AND MODERN AGRICULTURAL MARKETS RICHARD J. SEXTON Although microeconomics textbook writers many other textbook writers: “Thousands of Downloaded from continue to point to agricultural markets as farmers produce wheat, which thousands of examples of competitive markets, in real- buyers purchase to produce flour and other ity probably none are, especially in light of products. As a result, no single farmer and no dramatically increased concentration in food single buyer can significantly affect the price manufacturing (Rogers 2001) and grocery of wheat,” (p. 8). Yet, the U.S. Department of retailing (McCorriston 2002; Reardon et al. Justice (1999) sued to prevent the merger of http://ajae.oxfordjournals.org/ 2003), emphasis on many dimensions of prod- Cargill and Continental Grain Company,alleg- uct quality and differentiation (Saitone and ing that, “Unless the acquisition is enjoined, Sexton 2010), and the rapid increase in vertical many American farmers likely will receive coordination through integration and contracts lower prices for their grain and oilseed crops, (MacDonald and Korb 2011; Goodhue 2011). including corn, soybeans, and wheat.”1 Sales For the basic precept of a competitive mar- from the production of the “thousands” of ket to hold, namely that all buyers and sellers farmers in Canada, the second-largest wheat are price-takers, three conditions must be met: exporting country, were until August 1, 2012, under the control of a single state trader, and at Libraries-Montana State University, Bozeman on March 20, 2013 • Buyers and sellers must be small relative wheat is a highly differentiated product based to the total size of the market, meaning upon protein content and other factors (Wil- there must be many of each; son 1989; Lavoie 2005).
    [Show full text]
  • Benefits to Agricultural Workers Under the Unemployment Compensation Amendment of 1976
    BENEFITS TO AGRICULTURAL WORKERS UNDER THE UNEMPLOYMENT COMPENSATION AMENDMENT OF 1976 By G. Joachim Elterich* n January 1978, under P.L. 94­ The "Unemployment Compensation Under the employment compensa­ 566, Unemployment Insurance Amendments of 1976" are expected to tion program, eligible workers are p!:o­ I provide income protection for about two­ (UI) coverage was extended to agri­ fifths of all hired agricultural workers. The vided with partial income protection cultural workers in establishments program became effective in January 1978. should they become unemployed employing 10 or more workers for 20 Of these insured workers, three-tenths are expected to receive benefits, expected to with cause. Only those working for weeks or more, or with a quarterly average about 14 percent of average annual employers subject to the law are eli­ payroll of at least $20,000. Recent earnings if 1970 employment relationships gible to receive benefits. They must studies of the impact of the law on hold. Nearly one-fourth of unemployed farm workers who receive benefits will meet the following additional condi­ agricultural employers and trust funds likely exhaust their entitlements before tions. Unemployment for UI purposes found: finding new jobs. Large interstate varia­ is defined in monetary and nonmone­ tions are expected around these averages tary terms. To qualify monetarily, a Only about six percent of all as a result of differing State qualifying regulations, benefit schedules, and per­ worker must show "SUbstantial agricultural (five percent of sonal work histories. farm) employers will be attachment" to the covered labor affected by the law, and these Keywords: force, either for a sufficient number employers cover about half 0f Unemployment insurance of weeks or its equivalent in earnings.
    [Show full text]
  • Department of Agricultural Economics and Economics
    THE COLLEGE of AGRICULTURE Department of Agricultural Economics and Economics The Agricultural Economics and Economics Department at Montana State University offers a unique opportunity for students with diverse interests to learn skills in critical analysis, logical problem solving, data and policy analysis, written and oral communication, and business management. Our award-winning faculty has expertise in a wide variety of fields, conduct cutting- edge research, and take an active interest in their students by keeping class sizes small and implementing innovative teaching methods. Our programs have an excellent reputation with local, regional, national and international firms, as well as graduate schools in law, economics, and public policy. CURRICULUM OPTIONS B.S. Agricultural Business ities on the other, is growing rapidly. The MSU B. S. Economics Agricultural businesses are involved in agribusiness management curriculum has Offered as an interdisciplinary program from producing, transporting, processing and established an excellent reputation with em- the College of Agriculture and the College of distributing food and fiber products. Almost ployers and is specifically designed for man- Letters and Science, the Economics major 20 percent of the U.S. economy’s output agement training with emphasis on finance, offers training and applied knowledge in involves the food and fiber sector—90 accounting, and managerial economics in economic development, environmental policy percent of which occurs beyond the farm agriculture-related businesses and industries. and natural resource economics, industrial gate. Agribusiness is a dynamic industry with organization, international economics and a high degree of global and technological Farm and Ranch Management Option trade, labor economics, money and banking, sophistication.
    [Show full text]
  • AGRICULTURAL ECONOMICS 445 AGRICULTURAL and NATURAL RESOURCE POLICY ANALYSIS Course Syllabus, Spring Semester 2020
    AGRICULTURAL ECONOMICS 445 AGRICULTURAL AND NATURAL RESOURCE POLICY ANALYSIS Course Syllabus, Spring Semester 2020 I. Basic Information: Classes meet Tuesdays and Thursdays, 11:00-12:15 in 148 Chase Hall. Instructor: Prof. Peterson, 207B Filley Hall (0922); [email protected] Note: Students should not register for both this class and classes on City Campus that are scheduled to end at 10:45 or to begin at 12:30 as 15 minutes is not enough time for travel between the two campuses. Course Description: The purpose of this course is to introduce students to the use of economic tools and concepts in the analysis and evaluation of public policies affecting agriculture, food, natural resources, and the environment. Emphasis is placed on social valuation, civic responsibility, ethics and the practical analysis of public policy issues. The course is divided into two parts: Part I: Basic Concepts and Theoretical Background for Policy Analysis: the problem of collective action, basic economics of markets and human behavior, welfare economics, the role of the state, ethical and political dimensions of policy analysis. Part II: Economic Tools for Policy Analysis and Case Studies: benefit-cost analysis, market models, welfare analysis, and partial and general equilibrium analysis. These analytical methods are illustrated with case studies in food, agricultural, natural resource, and environmental policies. II. ACE Learning Outcomes. This course is designed to provide an opportunity for students to satisfy one of the following ACE Learning Outcomes: Learning Outcome 10: Generate a creative or scholarly product that requires broad knowledge, appropriate technical proficiency, information collection, synthesis, interpretation and reflection.
    [Show full text]
  • Unravelling the Links Between Agriculture and Economic Growth: a Panel Time Series Approach for Post-WW II Africa
    Unravelling the links between agriculture and economic growth: a panel time series approach for post-WW II Africa Evert J. Los and Cornelis Gardebroek Agricultural Economics and Rural Policy group Wageningen University, The Netherlands Hollandseweg 1, 6706 KN Wageningen, The Netherlands tel. +31 317 482951 ; fax +31 317 484736 ; [email protected] Abstract This study explores the interaction between agricultural development and economic growth for 52 African countries in the period 1961-2010. The study applies panel co- integration and Granger causality approaches in order to unravel the links between economic and agricultural development. The estimation results imply that the agricultural sector performs different roles in different stages of economic development. In low income countries, increasing the level of food production plays a pivotal role in generating further economic development, whereas in the more developed upper middle income countries the outflow of labor to other economic sectors is crucial for understanding economic growth. The profoundly stated argument that reallocation of labor from agriculture towards other economic sectors is among the main drivers of economic growth for developing countries, is therefore only found to be valid under specific circumstances. Moreover, panel causality results show the existence of a bidirectional causal relation between agricultural and economic development. Keywords Agricultural Development – Economic Growth – Africa – Non-Stationary Panels - Panel Co-Integration – Panel Causality 1 1. Introduction The presumed relation between agriculture and economic growth is an extensively debated topic. Often, a low productivity level and a slow growth of the agricultural sector are perceived as the main causes for low incomes and slow economic growth in developing countries (Alston and Pardey, 2014).
    [Show full text]
  • Agricultural Economics July, 1978
    SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS JULY, 1978 AGRICULTURAL ECONOMICS: A CRITICAL REVIEW OF THE STATE OF THE SCIENCE James E. Martin* The title of this paper provides almost un- tieth century. The word "agriculture" was de- limited latitude for discussions of the contribu- rived originally from the Latin to mean "field tions, or lack thereof, of the scientists engaged cultivation" and included the raising of plants in the application of a body of knowledge com- and animals for food, clothing, and other needs monly referred to as agricultural economics. of man. However, the more modern usage of Because a complete review of the field of agri- the term has expanded this meaning to include cultural economics would exceed the scope of a a host of firms and activities involved in sup- paper, this discussion will be oriented to select- plying the inputs utilized by farmers for the ed issues. The issues discussed are related pri- production of plants and animals. Also marily to empirical analyses. Selected defini- included in the modern definition of agricul- tions are used to provide a basis for the argu- ture are those activities and firms engaged in ments presented. further processing, packaging, distributing, and marketing the food and fiber products pro- duced by farmers. Thus, the breadth and scope SELECTED DEFINITIONS of modern agricultural subject matter have in- creased. A growing interdependence has de- Agricultural economics may be defined as veloped between the agricultural and non-agri- the application of the social science of econom- cultural sectors of a modern society. ics to the field of agriculture.
    [Show full text]