Abstract:
Agriculture - economic growth relationship is the subject of many studies, with different methodology, content and
perspectives. In this context, the paper presents an econometric analysis of macroeconomic level in order to measure the
contribution of agriculture to economic growth equation and evaluating the causal relationship with industry. The
econometric analysis undertaken, using OLS method (Ordinary Least Square or the method of least squares) and TSLS
method (Two Stage Least Square or the method of least squares in two-stage). Contribution of agriculture is defined in
terms of the agricultural GDP (gross domestic product) and the economic growth in terms of evolution of real GDP.
The results reveal that agriculture occupies a secondary place in economic growth. Regarding the links between
agriculture and industry, they are in favor of industry. Why? Because, in the agricultural GDP equation, the industrial
GDP coefficient has a negative sign (-), and in the industrial GDP equation, the agricultural GDP coefficient is positive
(+). Therefore, the industrial sector has greater benefits from industry-agriculture relationship and by effect of
agriculture-growth relationship. Developing the agricultural sector deserves o priority position since growth in this
sector helps the industry to grow further. However, capital investment in agriculture releases farm labor that often is not
absorbed by the economy and emphasizes the degree of rural poverty. Thus, encouraging the industrial development by
increasing agricultural sector, the position of rural poverty can increases. This reality indicates that agricultural
development should not be hampered in favor of concentrating resources for industrial development and must be found
an optimal balance between industry and agriculture, so the rural poverty to be alleviated and the economy to record a
sustainable growth.
