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Agriculture and Growth in Oceania

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This article examines the contribution of agriculture to the economic growth of countries in the Oceania region. The empirical analysis is based on a Cobb-Douglas production function. The estimation methodology follows a combined time-series and cross-sectional form using annual data for the period 1994 to 2006. The major finding of this article is that agricultural growth contributes to overall economic growth of countries in Oceania. In terms of the potential contributors to agricultural expansion, a positive and statistically significant influence of growth in output on the growth of the agricultural sector is confirmed; while a positive effect of government spending on the agricultural sector is also confirmed. The empirical evidence presented in this article leads to the suggestion that agriculture in Oceania ought to be given priority in terms of its long-term development through investment in physical and institutional infrastructure, market access, financial support, skill development and investment incentives.

Affiliations: 1: Sultan Qaboos; 2: Australian College of


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