Relevance of Declining Agriculture in Economic Development of South Asian Countries: An Empirical Analysis

S. A. Ansari and W. Khan

AGRIS on-line Papers in Economics and Informatics, 2018, vol. 10, issue 2

Abstract: Role of agriculture has been a matter of debate among development economist. Agriculture has been a major contributor in national income and employment in South Asian economies but its share in the national GDP has been declining over time. This study examines the relevance of declining agriculture due to structural transformation in economic growth of four South Asian countries namely India, Pakistan, Sri Lanka and Bangladesh. To analyze the long-run relationship between agriculture and economic growth, an empirical model based on Augmented Neoclassical Solow-Swan model is developed. Johansen and Juselius (1990) maximum likelihood technique based on VAR model and Granger causality test has been employed to analyze long run and short run causal relations between agriculture and economic growth respectively. Results show that in all four South Asian countries, agriculture has long-run association with economic growth and it is an important driver of economic growth. Short-run analysis indicates that agriculture stimulates economic growth in all South Asian countries except Bangladesh. Neglect of agriculture and excessive focus on industrialization may retard growth both in short and long run.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/276108/files/3 ... 18-2-ansari-khan.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:276108

DOI: 10.22004/ag.econ.276108

Access Statistics for this article

More articles in AGRIS on-line Papers in Economics and Informatics from Czech University of Life Sciences Prague, Faculty of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().