Transformations  in
Business & Economics

A STRUCTURAL DECOMPOSITION AND COMPARISON OF DIFFERENT FACTORS ON THE AGRICULTURAL SECTORS OF CHINA, RUSSIA AND INDIA, UNDER A GLOBAL VALUE CHAIN
Lijun Jia, Xiaosong Zheng, Haiping Xu, Danheng Zhao

ABSTRACT. China, Russia and India are the three major powers in the BRICS countries. They are also the main cooperative partners in the Silk Road Economic Belt. Based on the WIOD non-competitive input-output tables of these three countries from 1995 to 2011, we first structurally decompose the main factors affecting the proportion of those countries' agricultural outputs in terms of GDP. We also investigate the different effects of four categories of factors, namely intermediate inputs, consumption, investment and exports. We find that intermediate inputs and consumption are the main forces behind the decline in the proportion of agricultural GDP in these three countries. Furthermore, the different intermediate inputs of industries and the different degrees of consumption of various sectors can result in different effects. In contrast, however, investment and exports tended to drive increases in the proportion of agricultural GDP in China, Russia and India.

KEYWORDS: agricultural GDP proportion, input-output, factor decomposition.

JEL classification: P20, Q12, Q19.