Advances and Applications in Statistics
Volume 58, Issue 2, Pages 123 - 135
(October 2019) http://dx.doi.org/10.17654/AS058020123 |
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IS DIVERSIFIED EXPORT A DRIVER FOR AGRICULTURAL GROWTH IN DEVELOPING COUNTRIES? A DYNAMIC MODEL
Elham Sadeghi, Reza Moghaddasi, Seyed Safdar Hosseini and Amir Mohammadi Nejad
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Abstract: Due to the impact of agricultural sector on economic growth especially in developing countries, study of the factors affecting agricultural growth, including export diversification and trade liberalization is important. Export diversification is considered as increasing the number of export goods in the agricultural sector which leads to sustainable earnings from export and finally income growth. This article provides evidence on the relationship between export diversification and agricultural growth using a panel data set of 20 developing countries during 2000-2014. The study adopted Herfindahl index for export diversity and generalized least squares (GLS) to examine dynamic interactions among the variables. Main results showed that openness, export diversification, rainfall, agricultural areas, labor force and total factor productivity had a positive effect on agricultural growth. Estimated model reveals convergence theory and the hump-shaped relationship between mentioned variables. This finding suggested that, to achieve agricultural growth under trade liberalization, countries should diversify their agricultural export and develop economic cooperation with other countries. |
Keywords and phrases: agricultural growth, developing countries, export diversification, Herfindahl index.
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