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COMCEC Agriculture Outlook 2016



Macro Agricultural Indicators

Macro agricultural indicators provide an overview of agricultural sector in an economy.

They take the big picture and show the overall agricultural performance in a country. At a first

glance, the importance and size of agriculture sector, the progress in agricultural development,

and the main social and economic trends can be understood by looking macro agricultural

indicators. While they give a great idea of the sector, they also present the comparison of

agriculture sector and other sectors, and agricultural performance in the world.

The value of total agricultural output, the share of agricultural production in an

economy, the growth rate of the sector, agricultural population, contribution of agriculture

sector to total employment, the share of agriculture in total export and import, and

export/import ratio are useful indicators to assess the performance of agriculture sector in an



Agricultural Value Added

The agriculture sector in developing countries is one of the leading sectors in terms of

its contributions to income. It is also the most effective sector in generating income for the

poorest segment of the population, which shows its crucial importance for their welfare.


Suitability of ecological conditions, availability of natural resources and human capacity to

carry out agricultural activities, and existing of production and marketing infrastructures play

a crucial role to create agricultural output and income. Therefore, agriculture sector has a

critical importance for many OIC Members; especially for the LDCs and the level of dependence

on agriculture for overall economic growth is very high in many of the Member Countries.

The significance of agriculture in national economies varies extensively. While in many

least developed countries, agriculture accounts for more than 50 percent of GDP, in many high

income economies such as the members of

Organization for Economic Cooperation and Development

(OECD), agriculture constitutes less than 1.5 percent of overall economic output.

Thus, the role of agriculture in overall economic growth will vary from country to country, and

in general agriculture is more important in poorer countries. In other words, in the least

develop countries one of the major drivers of overall economic growth is agriculture. This is

largely due to higher income elasticity of demand for non-agricultural goods and services. As

their incomes grow, consumers increase their consumption of manufactured goods and

services faster than their consumption of agricultural goods.


This characteristic of the

agriculture can be clearly observed in the OIC as a whole in line with the theory of economic



Comcec, 2012


Cervantes-Godoy and Dewbre