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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. [ABSTRACT FROM AUTHOR]

In this article, we discuss some key aspects of biofuel production in developing countries, and where constraints and tradeoffs are likely to occur. We use the example of two countries, Senegal and India, to highlight some of the issues of cost competitiveness, problems with ensuring stable supply of feedstock as well as critical missing links in the biofuels value chain that pose problems to scaling up national programs in these countries. We discuss the particularly problematic nature of jatropha, as a biodiesel feedstock, and underline some helpful guiding principles that can help country-level policy. We point to an underlying 'duality' between a well-functioning food system and favorable conditions for agribusiness enterprises, such as biofuels, and the relevance it has to achieving food security goals. [ABSTRACT FROM AUTHOR]

Africa is urbanizing rapidly. Yet most dual economy models focus on the sectoral rather than spatial dimensions of development. This article adopts a 'dual-dual' approach to measuring rural/urban and farm/nonfarm linkages. We develop an economy-wide model of Ethiopia that distinguishes between cities, towns, and rural areas. The model captures detailed sectoral and regional linkages, internal migration flows, and externalities from urban agglomeration. We find larger linkages between agricultural production and small towns and show that redirecting urban growth toward towns rather than cities leads to broader-based economic growth and poverty reduction. In contrast, industry and services, particularly within cities, are far less effective in reaching rural areas and the poor. Africa's current urbanization pattern-toward major cities rather than towns-will weaken national growth-poverty linkages. Urbanization that takes advantage of the synergistic relationship between agriculture and small towns has the potential to result in a more inclusive growth trajectory. [ABSTRACT FROM AUTHOR]

This article examines the contribution of agricultural exports to economic growth in less developed countries (LDCs). A sources-of-growth equation is developed from a dual economy model where agricultural and nonagricultural sectors are both divided into export and nonexport subsectors. This is then estimated using panel data for 62 LDCs for 1974–1995. Results provide evidence that there are significant structural differences in economic growth between low, lower-middle, and upper-income LDCs. Investment in the agricultural export subsector has a statistically identical impact on economic growth as investment in the nonagricultural export subsector. The marginal productivities in nonexport subsectors are over 30% lower than those in respective export subsectors. From a policy perspective, the results suggest that export-promotion policies should be balanced. [ABSTRACT FROM AUTHOR]