Is Agricultural Sector Growth a Precondition for Economic Growth? The Case of South Africa

D. Poonyth, R. Hassan, Johann Kirsten and M. Calcaterra

Agrekon, 2001, vol. 40, issue 2

Abstract: In this paper a simple growth model is adapted to explain the effect of the agricultural sectors' growth on the non-agricultural sector. The empirical results suggest that for a 1 % growth in the agricultural sector, the non-agricultural sector responds by more than 1 % . The results also confirm that productivity difference exists, the non-agricultural sector being more efficient in terms of input use. The empirical results supports the argument of President T. Mbeki, that South Africa should follow an "agricultural-led" growth strategy for successful development.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2001
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Working Paper: IS AGRICULTURAL SECTOR GROWTH A PRECONDITION FOR ECONOMIC GROWTH? THE CASE OF SOUTH AFRICA (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:269291

DOI: 10.22004/ag.econ.269291

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