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| Title: | Economic Interactions between Agriculture and the Non-Farm Sectors in Kenya |
| Author: | Sharma, K.L. |
| Year: | 1988 |
| Periodical: | Eastern Africa Economic Review |
| Volume: | 4 |
| Issue: | 1 |
| Period: | June |
| Pages: | 12-17 |
| Language: | English |
| Geographic term: | Kenya |
| Subjects: | service industries industry agriculture Agriculture, Natural Resources and the Environment Economics and Trade Development and Technology |
| Abstract: | This paper examines the degree of interdependence between agriculture, manufacturing, and services sectors in the Kenyan economy using input-output tables for the years 1967, 1971 and 1976. The changing input-output coefficients and the Leontief inverses are analysed over the period. The sectoral output growth between 1967 and 1976 is decomposed into the growth effect, input-output coefficient effect, and the demand-mix effect. The results show that agriculture is becoming increasingly dependent on manufacturing for the use of technical inputs in the production process, whereas the dependence of manufacturing on agriculture is declining. The total interindustry linkage effects generated by the manufacturing sector are twice the effects generated by agriculture. The growth in final demand is the major determinant of the aggregate output growth, followed by the changes in technical coefficients. The composition of final demand has a negligible effect on output growth. Policymakers must take into account the dynamic interactions between sectors while emphasizing agricultural and industrial development in overall development plans. Bibliogr. |