What Role Does the Agricultural Sector Play in Growth and Development

A successful economic transition involves a continuous flow of resources from agriculture to industry. This resource transfer depends on structural factors affecting demand, marginal labour productivities, technical progress, sectoral factor endowments and public economic policies. Agricultural transition is an essential input of economic growth, but is not solely sufficient for generating sustained growth. The rhythm of agricultural transition is mainly explained by the dynamism of capital accumulation in the whole economy, by agricultural policies and by investment in human capital.