Agriculture and economic growth in an open economy : the case of Argentina

This paper provides a model for exploring the relationship between agriculture and other sectors of the economy and applies the model using data from Argentina, a country whose slow growth in agricultural production over the period 1940-72 can only be attributed to economic conditions and policies. After describing relevant political and economic developments in Argentina since the late 1800"s, the report explains the structure of the model and reviews the procedures, variables, and assumptions used to implement it. The model is then used to examine the effects of trade liberalization, exchange rate policies, and domestic taxation on Argentina"s agricultural sector as well as the roles of technology, government investment, and foreign prices. The remainder of the study is devoted to a technical explication of the model. Its unusual approach to production functions is explained and equations for incorporating expenditure data and other data (e.g., those pertaining to such factors as labor migration and unemployment) are described in detail. A 49-item bibliography (1955-81) is included; appended are an explanation of the model"s variables, extensive economic data tables, and empirical equations for annual data averages.