Relationship between agricultural growth and farm imports in LDCs: a Sims' causality test based on 35 countries

Abstract

ABSTRACTPrevious empirical studies on the relationship between agricultural growth and farm imports in the LDCs suffer from serious methodological defects, which to some extent may invalidate their results and interpretations. This study used Sims' causality test to examine interactions between agricultural output and agricultural imports for 35 LDCs individually. It was found that there was no causality from agricultural output to agricultural imports for a majority of countries under study. For countries where agricultural growth did have a causal effect on agricultural imports, the effect was positive in some countries and negative in others.