Abstract
Drawing upon the Global Trade Analysis Project (GTAP) database, and other time series data, we construct a multi-sector Ramsey model that shows the transition growth of the Brazilian agricultural sector and its effects on growth of the industrial and service sector of the economy, with particular emphasis given to the years 1994-2010. Our results capture the importance of the agriculture's capital intensity and the sector's factor productivity on the sector's growth, the substitution of capital for labor in agriculture, and the sustaining of agriculture's share in Brazilian GDP. These features are rather unique among emerging economies, most of which have experienced a transition out of agriculture and growth in nonfarm production relative to agriculture.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 333-359 |
| Number of pages | 27 |
| Journal | Developing Economies |
| Volume | 51 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2013 |
Keywords
- Agriculture
- Economic growth
- Macroeconomics variables
- O10
- O11
- Q1
