Premium
Agricultural Exports and Economic Growth in Developing Countries: A Panel Cointegration Approach
Author(s) -
SanjuánLópez Ana I.,
Dawson P. J.
Publication year - 2010
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2010.00257.x
Subject(s) - cointegration , agriculture , economics , panel data , promotion (chess) , international economics , developing country , agricultural economics , international trade , econometrics , economic growth , ecology , politics , political science , law , biology
This paper quantifies the contribution of agricultural exports to economic growth in developing countries. We estimate the relationship between GDP and agricultural and non‐agricultural exports for 42 countries using panel cointegration methods. Results show that a long‐run relationship exists, the agricultural export elasticity of GDP is 0.07 whereas that of non‐agricultural exports is 0.13, and total exports Granger‐cause GDP, which supports the export‐led growth hypothesis. Structural differences exist in the relationship by broad income group. Balanced export‐promotion polices are implied for the poorest countries, but, for those with higher incomes, higher economic growth is achieved from non‐agricultural exports.