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Contribution of agriculture in economic growth: A case study of West Bengal (India)
Author(s) -
Khan Waseem,
Jamshed Mohammed,
Fatima Sana
Publication year - 2020
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.2031
Subject(s) - agriculture , cointegration , economics , agricultural economics , west bengal , gross domestic product , livelihood , poverty , development economics , economic growth , geography , socioeconomics , archaeology , econometrics
Economists have argued that role of agriculture is pivotal for economic development of the nation. Worldwide studies have shown that agriculture sector is more effective in reducing hunger and poverty than other sectors. This study is an attempt to ascertain the importance of agriculture in the economic growth of West Bengal. Agriculture, being the source of livelihood and supplier of raw material to various industries, triggers economic growth of the nation. This paper exhibits how agriculture has contributed to West Bengal's economic excellence using empirical data and a cointegration analysis. The role of agriculture is examined on four contributions: (a) product contribution (forward linkage), (b) market contribution (backward linkage), (c) factor contribution, and (d) foreign exchange contribution. The composition and growth of the sectors and its association with other sectors is analyzed using time series analysis. Findings of the study revealed that agriculture sector has appeared as an important contributor to drive West Bengal economic growth even after declining share in gross state domestic product over the years. Empirical analysis reveals that agriculture is having long run causal linkages with industry, services, and overall economic growth in West Bengal.