ABSTRACT
Many prominent agricultural economists such as Inn a Adelman (1995b) have recognized the value and important role of agriculture in development. Adelman (1995b), however, focuses on agricultural-demand-led industrialization (ADLI). ADLI focuses on shifting a greater share of domestic resources and investment into the agricultural sector than a purely export led strategy. The emphasis is on the small and medium scale farmer and increased agricultural productivity and the linkages provided by higher rural incomes. ADLI supports an open economy that leads to a more efficient allocation of resources since prices are no longer distorted. The ideas proposed in this paper differ from ADLI in that they emphasize the important and dynamic role of agricultural exports for economic growth. The model, in this paper, was developed to extend the commonly held belief that the agricultural sector could only affect long run growth rates through increased demand for manufactured goods or that the only road to development is through industrialization and manufacturing.
