 |
|
|
|
|
|
|
|
|
|
 |
|
||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
 |
 |
 |
|
||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Contribution of Agriculture to GDP and Total Supply Dr. Inyambo Mwanawina and Dr. Anthony Mwanaumo Output is a summation of intermediate and value added/final demand/primary inputs and this in turn is equal to GDP plus intermediate inputs. Based on available statistics, the Share of agriculture by final demand is estimated at 20.4%. This is the most quoted statistic of agriculture contribution to GDP. The Share of agriculture by value added is on the other hand equal to 28%. Total contribution of agriculture to output (GDP plus Intermediate inputs) is equal to 11.1%. The Agriculture sector’s output used for final demand equals 66.8%. The total contribution of agriculture to output is the total contribution of agriculture to the production of each of the sectors and is either in direct or indirect forms. In this context, 1.9% in the table below should be interpreted as total supply in excess of what the sector needs. Specifically, agriculture contributes to the various sectors as stipulated in the table below. The highest contribution is to manufacturing at 4.7% while the lowest is to construction at 0.1%. Contribution of Agriculture to Production or Total Supply (%)
Source: Calculated from the 1998 input-output table, produced by the National Accounts Division, Central Statistical Office The Index of backward linkage measures what agriculture sector gets from sectors to use in its production. The Index of forward linkage is what other sectors require from agriculture in their production. This is relatively stronger because of mainly food processing. Nevertheless, both the backward and forward linkages are low as they should be above 300. There is thus need for a policy to strengthen agriculture linkages in the economy if the sector is to be an engine for economic growth. Though the calculations are based on 1998 data from CSO, the basic principle of understanding agriculture contribution to other sectors comes out. The point is that when these contributions to other sectors are adjusted for, the total contribution from agriculture is higher than is usually quoted.
|