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This article empirically examines the existence of inter-sectoral growth linkages among the key sectors of the Indian economy at the state level. The examination evaluates the impact of the non-agricultural sectors of the states and that of the rest of the states on agricultural output of a particular state. An annual panel data set for 15 general category states have been taken for the period 1980–1981 to 2012–2013. Panel cointegration and fully modified ordinary least square methods have been used to study the existence of a long-run equilibrium relationship between sectors. The results suggest that there is a long-run equilibrium relationship among three sectors of the economy in the Indian states. The evaluation indicates that the industrial sector contributes positively in complementing the growth of agriculture, but the service sector advancement affects agricultural growth negatively. However, services having some direct reference to agriculture such as transport, storage and communication (TSC), trade, hotel and restaurant (THR) and banking and insurance (BI) have positive linkage with agriculture. The state specific econometric evaluation of the agricultural output varies relatively across different states, for example, in Kerala, the impact of rest of the industries and services leaves a positive significance; whereas, the study foresees the negative impact of industry and services in the states such as Bihar, Madhya Pradesh, Orissa and Rajasthan. In order to neutralize the negative linkages of service sector on agriculture, policies for promoting pro-agricultural services such as crop and agricultural insurance, agricultural loans, facilities for agricultural warehouse, marketing services, weather communication, transport services and provision of technical support to farm activities are important. Such initiatives can help agricultural sector grow along in the simultaneous development of sectors propelling growth of the economy at a faster rate.

The agricultural growth linkage debate substantiates that agriculture contributes to economic growth through its linkages to other sectors. This paper contributes to the debate by combining...

The heterogeneity of southern African countries offers the region a unique opportunity to exploit agricultural potential and trade opportunities through regional integration. We analyze the implications of such opportunities using a regional general equilibrium model. We find that growth in South Africa benefits the region`s lowincome countries through increased demand for their agricultural exports, higher prices that stimulate production for domestic markets, and slower decline of prices from increased production. Agricultural productivity growth, however, is necessary for low-income countries to take advantage of South Africa`s growth. The largest benefits for low-income countries result from rising productivity of grain and livestock production.

The primary concern of the present study is to re-examine the relationship between Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) in Malaysia when savings-investment gap recorded a surplus in the late 90’s. It focuses on the transition period from shortage to surplus in savings, which has not been given attention by many previous studies, especially in Malaysia. Using time series analysis, the quarterly data consisting of FDI, GDP and trade openness from year 2000 until 2010 were carefully analyzed and Autoregressive Distributed Lag (ARDL) model for integration and Granger Causality tests were employed. The results revealed that all the variables used in the study are co-integrated in the long run. Furthermore, the results also show that there exists the unidirectional Granger Causality from FDI to GDP. Thus, this study concludes that Malaysia still relies on FDI to boost its economic growth even though there is a surplus in savings-investment gap. DOI: 10.5901/mjss.2015.v6n4s2p652

This paper measures economic linkages emanating from investment-led growth in eight different African countries with widely varying economic structures. To explore the importance of price effects in estimating these linkages, the paper employs two different methodologies for measuring the linkages, a fixed-price semi-input--output (SIO) model as well as a fully price-endogenous computable general equilibrium model (CGE). Regardless of the methodology used, indirect effects prove to be large. On average -- across countries and sectors -- inclusion of growth linkages nearly doubles estimated national income growth following an initial investment-led shock. Sectorally, investments in agriculture generate the largest impact on the poor. Copyright 2003, Oxford University Press.

The rapid urbanization and economic growth during new round of globalization is largely due to the flows of Foreign Direct Investment (FDI). In this context the objectives of this chapter is to analyze the causality and linkage among urbanization, GDP and foreign direct investment in China and India with the help of secondary data from 1979 to 2012. It focuses on determinants and pattern of FDI flow in China and India. The study observes a significant positive correlation between urbanization and flow of FDI to a particular region both in China and India. The rate of growth of FDI is significantly influenced by rate of growth of urban population at 10 per cent level of significance and by rate of growth of per capita GDP at 1 percent level of significance. The study also highlights the causality and linkage between urbanization and FDI inflow with evidences from China and India.

In recent years, a considerable change has taken place in the way in which analysts of economic development have come to understand the nature of the growth process in rural areas and the relations between agricultural and nonagricultural activity as industrialization takes place. Growing awareness of the significance of nonagricultural activities in rural areas, of rural industrialization, and of the “livelihood diversification strategies” adopted by rural households has prompted this shift in understanding (Ellis 1998, 1–2). The strict agriculture/industry divide of standard dual-economy models has been broken down, and scholars have recognized the implications, both theoretical and policy-related, of the existence and development of the “pluriactive” rural household that derives its income from a variety of sources alongside agriculture. Various ways of analyzing the nature and implications of agriculture/industry interaction within rural areas, and the economic activities of rural households that underlie them, have been developed, but central to much of the work on the issue has been a model of the “growth linkages” between agricultural and nonagricultural activity. This model seeks to demonstrate how backward and forward linkages between growth in agricultural output and the expansion of manufacturing activity in rural areas operate to produce a “virtuous circle” of expanding employment opportunities, rising and often quite equally distributed rural incomes, and improving standards of living.

Only recently have major research efforts been put into investigating the potential of South African smallholder agriculture to stimulate economic growth, create employment and alleviate poverty in the black rural areas. Following on some of the pioneer work on this subject, this paper applies the concept of ‘growth linkages’ in the analysis of smallholder agriculture production in Eastern Cape. It shows that an injection of smallholder income into the rural economy will result in significant rural income growth beyond the initial injection. Exploitation of this potential would require a deliberate policy focus to aid agricultural transformation in the smallholder farming areas. Such support should be directed towards activities in which smallholder farmers have a comparative advantage, such as in citrus and livestock in Eastern Cape. Such a policy will then favor autonomous development of rural non-tradables, such as rural services, local construction materials, and perishable prepared foods.

General equilibrium and open economy trade theory are used along with time series data on the U.S. agricultural sector to provide insights into the structure of agricultural supply, factor returns and linkages to the rest of the economy. Output expansion and factor returns are found to vary depending on relative factor intensities, which we refer to as Rybczynski and Stolper-Samuelson like effects. The effect of the rest of the economy, particularly the increase in price of services, is found to have relatively large negative impacts on agriculture. The short-run effects of prices and factor endowments on growth in agricultural supply and factor returns are dominated by the long-run effects of technological change. © 1999 Elsevier Science B.V. All rights reserved.

The comparative effects on GDP and household incomes associated with various pathways of agricultural growth in Zimbabwe are investigated, based on SAM (social accounting matrix) multiplier analysis. Among the five growth paths considered, the "smallholder road to agricultural development" yields the largest increase in national income. It benefits smallholder households the most, but the income gains to the two other low-income household groups are lower compared to those arising from the four other agricultural growth paths. Foodcrop production, in which smallholders have a dominant share, shows a larger GDP multiplier than both the traditional (tobacco and cotton) and nontraditional (horticulture)export crop sectors, which are dominated by large-scale commercial farms.

The literature on JIT production suggests a causal link between work-in-process inventory and manufacturing productivity. Such a connection has been described in numerous case studies but never tested statistically. This paper uses historical data for 52 Japanese automotive companies to evaluate the inventory-productivity relationship. We find that firms increased their productivity rank during periods of substantial inventory reduction. More detailed tests suggest that inventory reductions stimulated gains in productivity: On average, each 10% reduction in inventory led to about a 1% gain in labor productivity, with a lag of about one year. Such effects were more immediate for Toyota affiliates, but undetectable for close suppliers of Nissan. These findings imply that inventory reduction served as an important driver of process improvement for many Japanese automotive companies, although some firms emphasized other methods.

Technology ‘spillovers’ are increasingly being recognized as sources of productivity growth. International ‘convergence’ in productivity levels has also been noted in recent studies. This paper reports a study of international total factor productivity (TFP) growth for 11 industrial sectors in seven OECD countries. Spillover variables are defined based on interindusty and international invention input–output (I(IO)) weights. These variables are tested against import-weighted variables. The study concludes that I(IO)-weighted R&D ‘spill-ins’ are important determinants of TFP growth and that convergence is dependent on domestic RBD.

This paper uses farm survey data from Eastern Province, Zambia to show that regional income multipliers arming from agricultural growth may be stronger than previously thought for Sub-Saharan Africa. However, the growth multipliers are driven primarily by household consumption demands) and they arise largely within the agricultural sector itself because of strong marginal budget shares for nontradable foods. Policies and investments to promote the supply response and local marketing of nontradable foods could greatly enhance the income and employment impacts of agricultural growth. Copyright 1995 by Oxford University Press.

This paper addresses how increased rural incomes in select African cases are spent on consumption items, the implications of these patterns for stimulating rural growth, and areas of intervention necessary to sustain demand-led growth from improved agricultural technology and economic reforms. The country studies utilize panel data collected by the International Food Policy Research Institute (IFPRI) in collaboration with African institutions and re

It is increasingly recognized that the assumption that the supply of tradable output is perfectly elastic, which underlies many regional economic models (esp. economic base models), does not hold in many developing countries. When the supply of tradable output (primarily agricultural products) and, in many cases, non-tradable output is inelastic, the resulting income multipliers will be substantially reduced. Recent calls for the promotion of market towns and smaller urban centers have not fully considered the impact of supply in elasticities on the capacity of such measures to stimulate broad-based development. This study uses data collected from firms in several market-town systems in Niger to examine the probable consequences. The paper argues that such policies are unlikely to be effective in countries like Niger where the vulnerability of the rural economy has severely limited the elasticity of the supply response, especially for agriculture and nonfarm production by small-scale producers.

An attempt has been made in this study to analyze the growth and impact of rural infrastructure on agricultural land/labour productivity in Jammu and Kashmir employing secondary data. The results indicated that although the road network in the state has significantly expanded but still number of regions are yet to be connected. Similarly 3% of the villages are yet to have electricity facility though the proportion of village electrified has increased since 1980s’. Moreover it is interesting to note that the electricity consumed for agricultural activities constitute only 5% of total electricity consumption in the state. As far as irrigation capacities in the state are concerned, it has shown only a marginal improvement over the years. While cooperative have shown a decline, the branches offices of banks have increased significantly. The estimates of agricultural land/labour productivity models revealed that rural infrastructure variables have significantly contributed to the growth of agricultural productivity and may have significant marginal impact. On the basis of major findings, this study suggests that the pace of growth in development of the agricultural economy has to be accompanied by consistent growth in rural infrastructure. The study also advocated the public-private partnership in building basic rural infrastructure uniformly across the state.

(1987). Regional growth linkages from agriculture: A reply. The Journal of Development Studies: Vol. 23, No. 2, pp. 290-294.

Agricultural growth stimulates rural nonfarm activity by boosting demand for production inputs and consumer goods. But different kinds of agricultural technology promote different patterns of nonfarm linkages. To explore how key features of agricultural technology affect growth in the rural nonfarm economy, this paper reviews an array of cross-section and time-series evidence bearing on the dynamics of the rural nonfarm economy. Then, using consumption and production parameters associated with different agricultural technologies, it introduces a simple model which isolates the effects of different technologies on nonfarm growth linkages.

Pioneering research on downstream linkages from agriculture is said to demonstrate that consumption links rather than production links are the main source of indrect growth effects, that these consumption links take the form of labour‐intensive goods and services produced locally, and that the largest farm enterprises are most locally multiplicative of activities mopping up surplus rural labour. This article has two purposes. First, the methodologies, assumptions and data base for the quantification of the local and non‐local regional multiplier effects from agricultural development are examined. Second, the contradictory interpretations for agricultural policy which have arisen from these exercises of quantification are discussed and an attempt made to explain their bases.

This paper aimed to explore the correlation between the agricultural and non-agricultural sectors in the rural area affected by the manufacturing industry agglomeration of Semarang. Data on agricultural commodities, non-agricultural labor, and economic service facilities were reduced using factor analysis to form the typology of agricultural commodity areas and typology of rural diversification respectively. The two groups of score factors were correlated to predict the magnitude, direction, and significance of the inter-sectoral linkages. Data interpretation was made with the help of agricultural commodity flow data from the selected market. The study confirms the weak linkages between large-scale manufacturing industries and the agricultural economy in the hinterland. The study reflects weak linkages between the agricultural sector and rural diversification, as indicated by the weak correlation between factor scores. A rather strong linkage is shown by dryland agricultural areas associated with inland fisheries and rural diversification associated with tourism.

We test the extent to which growth in the 11 CIS countries (excluding Russia) was associated with developments in Russia, overall, as well as through the trade, financial and remittance channels over the last decade or so. The results point to the continued existence of economic links between the CIS countries and Russia, though these links may have altered since the 1998 crisis. Russia appears to influence regional growth mainly through the remittance channel and somewhat less so through the financial channel. There is a shrinking role of the trade (exports to Russia) channel. Russian growth shocks are associated with sizable effects on Belarus, Kazakhstan, Kyrgyz Republic, Tajikistan, and, to some extent, Georgia.

Expenditure data were collected from 99 households in two rural areas of KwaZulu-Natal. District and wealth group expenditure analyses suggest a less-than-proportional increase in the demand for tradable farm commodities, and a more-than-proportional increase in the demand for non-tradable farm commodities following a 1 per cent increase in household expenditure. Expenditure on non-farm tradables (imported consumer durables) showed the greatest potential for demand growth, with expenditure elasticities ranging from 1,75 to 2,59. An increase of R1,00 in household income is predicted to add an additional 28 cents (multiplier of 1,28) to the local economy. The study estimates relatively weak growth linkages. However, even relatively weak growth linkages could lead to much needed new income and employment opportunities in the local farm and non-farm sectors if the constraints limiting agriculture, and hence broad-based growth in rural incomes, are alleviated. Agriculture-led growth in South Africa requires pu...

This paper makes use of Kaldor's first growth law to investigate the growth linkages between agriculture and the entire economy, as well as the agricultural and non-agricultural sectors in Ghana. Annual growth rates data used in the analysis to examine the significance of agricultural growth to overall economic growth indicate that growth in the agricultural sector is quite essential for general economic growth. Two-Stage Least Square analysis employed to handle the issue of interdependence between the agricultural and non-agricultural sectors also reveal that the magnitude of the growth linkages between the agricultural and non-agricultural sectors is quite significant. Resume: le document utilise la premiere loi de la croissance de Kaldor pour explorer, dans le cas du Ghana, les liens de croissance qui existent entre l'agriculture et l'economic tout entiere, et entre le secteur agricole et les autres secteurs. Les donnees de croissance annuelle utilisees dans l'analyse pour examiner l'importance de la croissance agricole pour la croissance economique globale, font ressortir que la croissancc du sectcur agricole est une condition essentielle de la croissanceeconomique generale. La methode des moindres carres en deux etapes, a laquelle l'auteur recourt pour traiter la question de l'interdependance entre le sectcur agricole et les sectcurs non agricoles, revele egalement la forte correlation entre la croissance du secteur agricolc et celle des secteurs non agricoles.

This paper reveals that over the period 1985-2013, the wealthier states of India experienced a prevalence of the feedback hypothesis between real gross domestic product growth and petroleum consumption in the short run and the long run. Over the short term, the whole (major) 23 Indian state panels show support for the conservative hypothesis. Regarding the panels comprising low- and middle-income Indian states, although there appeared to be significant bidirectional effects in the long run, none of the results suggest that energy consumption increases economic growth. This implies that growth in energy demand can be controlled without harming economic growth. The results, however, indicate that for the low- and middle-income states, increases in petroleum consumption could adversely affect economic activity in the short and long run. These findings relate to the aggregate data on petroleum. Examining the short-run and long-run energy-growth linkages using disaggregated data on petroleum consumption reveals that only a few types of petroleum products have stable long-run relationships with economic growth. In fact, with disaggregated petroleum data, the vector error correction model (VECM) and cointegration results support the neutral hypothesis for high-incomes states. For the low- and middle-income groups, while the conservation effect is found to prevail in the short run and the long run, higher economic growth appears to reduce consumption of selected types of petroleum products.

Rapid urbanization is an important characteristic of African development and yet the structural transformation debate focuses on agriculture’s relative merits without also considering the benefits from urban agglomeration. As a result, African governments are often provided conflicting recommendations on the importance of rural agriculture or urban industry. We develop dynamic economy-wide models for Ethiopia and Uganda that capture both traditional aspects of the debate (growth linkages and foreign trade) and benefits from urbanization (internal migration and agglomeration effects). Simulations suggest that urban agglomeration is an important source of long-term growth and structural transformation, but that investing in cities does not greatly reduce national poverty over the short-term. In this regard, agricultural growth is more effective, albeit with slower national growth. Given these trade-offs, we conclude that

Historically, most prominent channel of economic penetration of the third world has been through the regulation of aid and investment; it's purpose no greater than of a revolving credit and its fate almost always, swayed in the favour of the provider. On the eve of India's debut at expanding assistance to developing countries, the tenets of developmental politics as described under the aegis of the ‘South-South’ cooperation paradigm, certainly provide speculative hope, but not without cause for concern. The authors of this paper begin by investigating Aid and its effectiveness in Africa, followed by an analysis of the traditional aid-to-investment-to growth linkages. Following an investigation of the impact of economic relations on cultural capital to explore symbolic violence, this paper will finally question the idealistic assumptions surrounding South-South cooperation while in a larger context also questioning the discursive regime of Aid and Investment.

Although there is much empirical evidence of the importance of agricultureled economic growth, there is a renewed emphasis in development circles on the industrial sector as the main driver of growth, even for the low-income countries of sub-Saharan Africa. This article applies a simplified model of agricultural growth linkages to illustrate the importance of agricultural growth for increasing employment and accelerating poverty reduction in Ethiopia. Achieving rapid agricultural growth, however, will require the engagement of small commercial farmers, large enough to adopt new technologies and produce significant marketed surpluses, but small and numerous enough to have spending patterns that drive a large, vibrant rural non-farm sector.

This paper assesses the potential impacts from the introduction of high yielding and drought tolerant varieties of major food staples (wheat and maize) in Ethiopia. We develop a dynamic Computable General Equilibrium model with a micro-simulation module to examine the growth, poverty and distributional impacts of agricultural innovations. The analysis shows that introduction of improved varieties of these food staples is likely to boost the cereal sector in the country. Other agricultural sub-sectors grow due to increased labour supply. Given that these staple cereals represent an important share of food consumption for Ethiopian households, the poverty impact of the interventions is positive. Although rural households benefit from higher gains in real consumption, poverty declines more in urban areas compared to the rural. This is mainly because the rural poor are generally far from the poverty line with a higher initial poverty gap compared to urban households and the urban poor benefit from price effects. As productivity-enhancing technologies are introduced, there is a need for policy interventions in rural areas targeting non-agricultural sectors to enhance growth linkages, increase employment and stimulate inclusive growth.

Pronounced disparities in income and economic opportunities exist between the coastal and the inland regions of China. This paper explores the proposition that regional disparities in China are related intimately to the structure of exports and foreign direct investment, which results in limited linkages from the growth engines. The spillover and migration effects of exports and FDI on regional income inequalities are investigated. The emphasis on FDI-driven, labor-intensive, processing-type exports in the coastal regions has attracted relatively mobile and efficient resources from the inland regions, but it has offered only limited growth linkages to those regions. This reallocation of resources has exacerbated the backwardness of the inland regions. Journal of Comparative Economics32 (1) (2004) 148–164.

In spite of substantial growth in agricultural GDP in the 1990s, rural poverty rates in Pakistan did not decline. This paper explores the reasons for this lack of correlation between increases in agricultural production and poverty reduction through an analysis of growth linkages using a 2001-02 Social Accounting Matrix (SAM)-based semi-inputoutput model. Model simulations indicate that expansion of traditional crop agriculture can significantly benefit rural poor farmers. However, because of skewed distribution of land and earnings from land, landless agricultural labourers and the rural non-farm poor (who, together, account for 61 percent of the rural poor) do not benefit directly from growth in the crop sector. In the absence of a change in the structure of rural incomes and employment, further measures will likely be needed for rapid poverty reduction in Pakistan, including greater efforts to boost the livestock sector, expansion of the rural non-farm economy (in addition to agricultural growth-induced linkage effects), and targeted interventions to the poorest rural households.

List of Tables. List of Figures. Acknowledgements. Foreign Direct Investment, Trade in Services and Economic Growth: An Introduction Shahid Ahmed Section I. FDI, Trade and Economic Growth 1. India-ASEAN Trade, FDI and Growth: Exploring Challenges and Opportunities Post-global Financial Crisis Tran Van Hoa 2. FDI in Sensitive Sectors: The Case of the Retail Sector in India Tanu M. Goyal and Arpita Mukherjee 3. FDI and Precision Agriculture in India Sarah Ahmed 4. Trade, Foreign Direct Investment and Economic Growth Linkages in Selected South Asian Countries Md. Saiful Islam and Syed Imran Ali Meerza 5. Estimating Country-specific Determinants of Foreign Direct Investment Flows in India: Evidence from VAR and the Innovation Accounting Model Bikash Ranjan Mishra 6. Causality Between Trade, Foreign Direct Investment and Economic Growth Under the Structural Adjustment Programme in India: An Application of the Toda Yamomoto Test Harish 7. Foreign Direct Investment and Efficiency: A Stochastic Frontier Analysis Suman Sharma 8. Financial Decoupling of Emerging Asset Markets from Japan and the US Peter J. Morton Section II. Trade in Services 9. India's Trade in Services with Select FTA and Non-FTA Partners: An Analysis of Comparative Advantage Nabeel A. Mancheri 10. Export Potential of India's Higher Education Sector: Identifying Opportunities and Constraints Shahid Ahmed and Sushil Kumar 11. Changing Pattern of Country Competitiveness in Trade in Computer and Information Services Jayesh N. Desai 12. Optimal Pricing Policy of Kolkata-Agartala Transit Route: Some Methodological Issues Subir Kumar Sen, Sudakshina Gupta and Ishita Mukhopadhyay Section III. Value Chains and Production Networks 13. Integration of the Indian Machinery Sector into Global Production Networks Neha Gupta 14. Value Chain in the Light Engineering Sector of Bangladesh: Challenges towards the Development of Regional Linkages Khondaker Golam Moazzem and Mehruna Islam Chowdhury. About the Editor. Notes on Contributors. Index

Virtually every country in Southern Africa, with varying degrees of commitment and success, has identified food security as an important policy goal. The problem of food insecurity in the countries of the region is, however, intricately linked to the wider problem of poverty and the main source of both of these problems is rural stagnation. This paper analyzes the critical linkages between food insecurity and rural stagnation in Southern Africa. Strategies and options for incorporating rural Southern Africans into a self-sustaining process of economic growth are examined with an emphasis on promoting rural employment and incomes. These include leveraging farm/non-farm growth linkages for maximum rural employment; promoting agriculture-based income diversification; and strengthening the linkages between the rural and industrial sectors. A number of strategic and tactical preconditions that must be met to ensure success and sustainability are also addressed in the paper, including: the need for an integrate...

Regional growth linkage modellers claim that agricultural growth generates non-agricultural diversification of rural regions through the operation of production and consumption linkages. These influential claims are often legitimated in terms of a composite model of ‘Asian success’ from which neoliberal policy prescriptions are derived for other parts of the world. This article argues that diversification of local rural economies does not emerge automatically from agricultural growth and market expansion. Rather, intersectoral and spatial linkages depend crucially on the social organization of production, the conditions of access to resources, and the social logic of investment—that is, who gets the surplus and what they do with it — as well as on wider configurations of political – economic forces. The article repositions key ‘Asian successes’ within institutionally and historically specific contexts, and shows how supposedly similar instances of regional growth linkages exemplify multiple and quite divergent paths of sectoral and spatial development.

It is often argued that technological spillovers or other externalities associated with exports or trade are sector-specific, yet trade and growth linkages are typically examined at the level of macroeconomic aggregates. This paper extends the analysis another level of specificity, analyzing the commodity composition of trade. This paper addresses three interrelated sets of questions. First, have Asian countries exhibited unusually high exports in particular industries? Has their commodity composition of exports been unusually concentrated? Second, has specialization in particular sectors emerged unusually rapidly the case of Asian countries? Third, can export similarity across Asian countries be explained by economic fundamentals?

Hegemonic theories of Third World regional development maintain that growth in rural small-scale industries can originate in growth linkages from modernized agriculture or in entrepreneurship devel...

In many developing countries like Pakistan, most research work on farm mechanisation has focused especially on farm labour displacement and income effects. These studies measure only the micro or direct effect of mechanisation on a specific farm unit, area or locality. They lack macro level impact of technologies that emerge from lin~ages between farm and non-farm sectors and between farm and the household: The importance of these production anq consumption linkages in agricultural growth has been emphasised [Hazel and Roell (1983); Mellor and Lele (1973); Mellor (1976); Yotopoulos and Nugent (1976)]. The growth linkages between farm and non-farm economy are primarily due to increases in household consumption expenditures. Increases in household consumption expenditure is directly related to escalation in income. Leontiefs (1951, 1966) inpu-output system provides a framework measure the overall effect of farm mechanisation employment an income. King and Byerlee (1977) measured links between changes income distribution and its effect on employment. Rangarajan (1982); Hazel an Roell (1983) showed that agricultural growth has substantial effects on other sectors economy. Ahammed and Herdt (1983 1985) also used the input-output system. The present study is basically an adoption of Ahammed and Herdt's (1983) model. A system of linear homogenous equations which permits solutions by simple matrix inversion operations hsa been used.

sequence of low market integration and low substitutability between domestic and imported foods. In addition, if the geographical area over which these multipliers are calculated increases, the share of nontradables in the economy rises and multipliers are correspondingly larger. This leads the authors to praise the potential for a demand-led approach to both agricultural and industrial development, anchored in productivity gains in traditional exports. While the general proposition is reminiscent of the development strategies advanced by Mellor (1986), Adelman (1984), and Hazell (1984), and by now well accepted, the quantification of multiplier effects is inadequate. The model used makes unrealistic assumptions that systematically bias upward the size of the growth linkages induced by technological change in farm or nonfarm tradables. Denoting by T = tradables, T, = farm tradables, NT = nontradables, E = elasticity of supply response, ,qM = elasticity of substitution in consumption between output (q) and imports (M), and m, = income multiplier of an extra $1 of income from farm tradables, the key assumptions made by the authors are T: E = 0, , qM= o; and NT: E = o, YqM = a value which does not matter as long as E = oo. This yields local m, between 1.3 and 1.8 reported in table 2 of the Delgado et al. paper. Consider now the more realistic characteriza

Preface - List of Acronyms - Notes on the Contributors - Introduction A.Parisotto & D.Campbell - Is an Integrated Regional Labour Market Emerging in East and Southeast Asia? D.E.Bloom & W.Noor - The Reorganization of Production on a World Scale: States, Markets, and Networks in the Apparel and Electronics Commodity Chains G.Gereffi - Changing International Division of Labour in the Electronics Industry J.Henderson - Regional Integration of East and Southeast Asian Economies: The Role of Japan S.Watanabe - Hong Kong and Coastal China Growth Linkages R.Skeldon - Growth Triangles in International Perspective M.Tang & M.Thant - Thailand in the Regional Division of Labour V.Charoenloet - An Employer Response N.Simakrai - A Worker Response S.Zuesongdham - The Philippines in the Regional Division of Labour A.C.Orbeta Jr & M.T.C.Sanchez - An Employer Response F.R.Floro - A Worker Response A.J.Dinglasan - Conclusion A.Verma - Index

This paper is an accumulation, over the past 25 years, of a body of detailed work examining the structure of Africa's rural, nonfarm economy. First, it systematically reviews empirical evidence on the nature and magnitude of the African rural, nonfarm economy. It then explores differences across locality and size, across countries and over time, in an effort to assess likely patterns of growth. A subsequent review of key production and consumption parameters allows an estimate of the magnitude of the agricultural growth multipliers in Africa. The paper concludes with a brief discussion of policies and programs that will be necessary if farm-nonfarm growth linkages are to achieve their full potential.