Accounting for agricultural decline with economic growth in Taiwan

Ling Sun, Lilyan E. Fulginiti, E. Wesley, F. Peterson

Research output: Contribution to journalArticlepeer-review

Abstract

In this paper, we develop an empirical model to decompose the evolution of the agricultural share of GDP into three components: price changes, factor endowment changes and technological change. Our results suggest that relative prices have a positive but small influence on the share of agriculture in GDP in both the long-run and the short-run. An increase in capital per unit of labor, on the other hand, is associated with a smaller agricultural share. Technical change has been biased in favor of the agricultural sector but this effect has been swamped by the magnitude of the input effects, in particular, the changes in the capital-labor ratio.

Original languageEnglish (US)
Pages (from-to)181-190
Number of pages10
JournalAgricultural Economics
Volume36
Issue number2
DOIs
StatePublished - Mar 2007

Keywords

  • Agricultural share
  • ECM
  • GDP function
  • Rybczynski Theorem
  • Unit root test

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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