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Monday, November 23, 2009

The Importance of Agriculture-II

Agriculture sector not only contributes to new products, industrial sector growth market , also contributed food supply and other new content for sector growth, taxation, Official for other departments to invest surplus and spent provide foreign currency. First in agriculture is to provide enough food to contribute work in the industrial sector.

Lewis from the balance of economic growth mode , we know that if one, in modern demand for food for better able to capture with the modern sector of the economy provided was to, a large amount of money modern sector to import food to feed wastes and reduce labor capital accumulation. This is the concept in practice, is one productivity of the agricultural sector may provide new . Investable surplus agricultural sector offers! and tax revenue cost of other areas . Excess supply of labor in the bargaining power of labor least developed countries in reducing. Therefore, their salaries are assumed to be constant. As the agriculture sector for the delivery of modern . Area, agricultural productivity. (Mpl membrane growth) sector will increase. Some surplus, the surplus for reinvestment owners will use in agriculture . Area, driving fast forward MPL. In this situation , TPPL, labor force increased productivity will benefit , new equipment, due to further strengthen the remaining owners. Express forward investment.

Another contribution is tax revenue. Increase in agricultural productivity that . Sector resources for other areas . If productive use of resources, accerlated effect can be! new labor resources, new materials and food is supplied. Not only increase food production in labor population growth also contributed to the modern sector feed.

The demand of food can be defined as below:

D = P + nG D:the rate of demand of food
P: rate of population growth
G: rate of real income growth
n: income elasticity of demand for agri.

Demand for agricultural products Product Reference income elasticity sweet. Product higher (0.6 or higher), at least compared to developed countries (0.2-0.3) HDCs. Thus, modern sector labor and income to increase with the resulting in high demand in agriculture . Products, agriculture and labor power. Sector to increase more land will be free, and tax payment government. One example is Japan in the last 20 years, Japanese government from direct production of 80% land tax revenue, its about 12-22% will come from agriculture. Only 2-3% in non-Department of Agriculture. Department.

Government can help increase government revenues increase in social investment programs and other educational standards to help economic development. To contribute to a growing market increase in industrial production of new products . Agricultural labor force as the actual income . Sector growth, but also for consumption, and provide better market industrial sector. Agriculture39s contribution. Department supply of foreign exchange. Clearly, growth in exports of primary products in least developed countries, the first phase. With agricultural productivity . Additional areas to expand their products will be exported to earn more foreign exchange. In the first phase as , small industrial sector production, quality is not good due to lack of new high-tech. And equipment. Therefore, the state depends on export-oriented agriculture will depend on only. Department. Provide public funds in exchange for foreign currency can invest in society and new equipment purchases in the modern sector. For agriculture amount. Region is very important for economic development. Government at least a majority of developed countries , only focus on the industrial sector expanded for neglect of agriculture. Department. It produced a lot of problems due to lack of foreign currency as , inadequate food supply. Therefore, at least these two areas developed countries should take.

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