ABSTRACT
The linkages between the agricultural and nonagricultural sectors of an economy are many and varied. They operate through intersectoral movement of production factors, such as labour and capital, as well as goods and services. With increased agricultural productivity and reduced labour requirements per unit of output, labour tends to move out of agriculture, especially when the population is increasing. In most developing countries, the percentage of the population engaged in agriculture, which is often 60 to 70 per cent, exceeds the percentage of gross domestic output that is contributed by agriculture, usually 30 to 40 per cent. Labour productivity is low in agriculture. However, in many developing countries in recent years, the proportion of the population engaged in agriculture has tended to decline, not so much in response to increased agricultural productivity, but rather as a result of the pressure from increased poverty and unemployment in agriculture.
