Agricultural productivity growth and the development of manufacturing in developing Asia

In this paper, it is argued that agricultural productivity is an important determinant of the extent of manufacturing development. Specifically, it was hypothesized that agricultural productivity played a significant role in influencing the share of employment in the manufacturing sector as a propor...

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Published in:Economic systems 2023-06, Vol.47 (2), p.101075, Article 101075
Main Authors: Grabowski, Richard, Self, Sharmistha
Format: Article
Language:English
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Agriculture
Asia
Structural change
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description In this paper, it is argued that agricultural productivity is an important determinant of the extent of manufacturing development. Specifically, it was hypothesized that agricultural productivity played a significant role in influencing the share of employment in the manufacturing sector as a proportion of total employment. This hypothesis was tested empirically utilizing data from eleven Asian countries over a thirty-five-year period. The results support the hypothesis. In addition, the results show that human capital accumulation has also played an important role in positively influencing the share of manufacturing employment in total employment for the countries in the sample. •We utilize a semi-open model of economic development.•Structural change is measured in terms of employment shares.•Agricultural productivity is a significant factor in structural change in Asia.
doi_str_mv 10.1016/j.ecosys.2023.101075
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subjects Agriculture
Asia
Structural change
title Agricultural productivity growth and the development of manufacturing in developing Asia
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