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Agricultural Growth Linkages in Guatemala: New Insights from a Value Chain Approach

Jochen Dürr

Journal of Development Studies, 2017, vol. 53, issue 8, 1223-1237

Abstract: The agricultural growth linkage debate substantiates that agriculture contributes to economic growth through its linkages to other sectors. This paper contributes to the debate by combining a value chain approach with input-output-analysis. Results for Guatemala show that the sectors linked to agriculture are predominantly informal sectors and that these sectors create less value added, but more employment than formal sectors. It is also demonstrated that forward linkages are more important than backward linkages. In conclusion, agricultural linkages to forward sectors have a high potential to generate employment and value added and therefore should be supported by development policies.

Date: 2017
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Handle: RePEc:taf:jdevst:v:53:y:2017:i:8:p:1223-1237