Agricultural Exports and Economic Growth in Developing Countries: A Panel Cointegration Approach |
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| Authors: | Ana I. Sanjuán‐López P. J. Dawson |
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| Affiliation: | Ana Sanjuán‐López is a Visiting Fellow in the School of Agriculture, Food and Rural Development, Newcastle University, Newcastle NE1 7RU, UK, and a Research Fellow in the Centre of Agrofood Research and Technology of Aragon (CITA), Zaragoza, Spain. E‐mail: for correspondence. Phil Dawson is a Reader in the School of Agriculture, Food and Rural Development, Newcastle University, Newcastle NE1 7RU, UK. E‐mail: . Ana Sanjuán‐López gratefully acknowledges financial support from the Spanish Ministry of Science and Education, within the programme ‘Fomento de movilidad de profesores e investigadores’. We are grateful to two referees and an External Editor for comments on a previous draft. |
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| Abstract: | This paper quantifies the contribution of agricultural exports to economic growth in developing countries. We estimate the relationship between GDP and agricultural and non‐agricultural exports for 42 countries using panel cointegration methods. Results show that a long‐run relationship exists, the agricultural export elasticity of GDP is 0.07 whereas that of non‐agricultural exports is 0.13, and total exports Granger‐cause GDP, which supports the export‐led growth hypothesis. Structural differences exist in the relationship by broad income group. Balanced export‐promotion polices are implied for the poorest countries, but, for those with higher incomes, higher economic growth is achieved from non‐agricultural exports. |
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| Keywords: | Agricultural exports developing countries economic growth panel cointegration C23 Q17 |
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