The Potentials of Agro-Industry for Growth Promotion and Equality Improvement in Indonesia

Luthfi Fatah

Asian Journal of Agriculture and Development, 2007, vol. 04, issue 01, 17

Abstract: Despite its significant roles in accumulating and sustaining growth, agriculture’s contribution to GDP and employment inevitably decreases as the economy grows. One possible strategy to promote the welfare of the agricultural sectors as well attain overall economic growth is by the development of agro-industry. Earlier research findings have contended that agro-industry improves income equality while still maintaining economic growth. This article uses empirical data in a Social Accounting Matrix (SAM) framework to verify these findings. The results reveal that agro-industry is indeed an appropriate vehicle for pursuing the goals of growth promotion and income equality.

Keywords: Agricultural and Food Policy; Productivity Analysis (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:phajad:165855

DOI: 10.22004/ag.econ.165855

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