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Modeling inter‐sectoral growth linkages: An application to U.S. agriculture
Author(s) -
Gopinath Munisamy,
Roe Terry L.
Publication year - 1999
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1999.tb00589.x
Subject(s) - economics , rest (music) , agriculture , general equilibrium theory , factor price , trade theory , relative price , econometrics , macroeconomics , international economics , microeconomics , free trade , ecology , biology , medicine , cardiology
General equilibrium and open economy trade theory are used along with time series data on the U.S. agricultural sector to provide insights into the structure of agricultural supply, factor returns and linkages to the rest of the economy. Output expansion and factor returns are found to vary depending on relative factor intensities, which we refer to as Rybczynski and Stolper‐Samuelson like effects. The effect of the rest of the economy, particularly the increase in price of services, is found to have relatively large negative impacts on agriculture. The short‐run effects of prices and factor endowments on growth in agricultural supply and factor returns are dominated by the long‐run effects of technological change.