SOURCES OF GROWTH IN US GDP AND ECONOMY-WIDE LINKAGES TO THE AGRICULTURAL SECTOR

Sources of growth in U.S. gross domestic product (GDP) are analyzed in a general equilibrium, open economy framework using time-series data. Contributions from labor and capital account for 75% of the economy's average growth, with total factor productivity (TFP) accounting for t he remainder. Changes in the domestic terms of trade appear to be bias ed in favor of the services sector and against the agricultural and in dustrial sectors. A number of Rybczynski and Stolper-Samuelson-like li nkages between the agricultural sector and the rest of the economy are identified. Labor-using technological change and favorable terms of t rade appear to be the major contributors to the growth of the services sector. These changes have led to a decline in the competitiveness of the industrial and agricultural sectors for economy-wide resources. T echnological change has tended to be neutral towards the production of farm output.