Analysis of the Relationship Between Agriculture, Economic Growth, and the Environment Through Keynesian Models - The Agricultural Economics of the 21st Century - page 108

Table 8.1 (continued)

Background theory/
relationships Variables Authors Countries

energy use), electricity produc-
tion (conventional thermal—
e.g., coal, natural gas, oil—and
nuclear sources) and the envi-
ronment quality (CO 2 emissions)
Environmental quality (con-
sumption of chlorofluorocarbons
in kilograms per capita, emis-
sions of organic water pollutants
in tons per day, energy use in
tons of oil equivalent per capita,
adjusted net savings in percent-
age of gross national income),
the international trade intensity
(trade as a percentage of GDP,
applied tariff rate, weighted
mean of all products), the GDP,
and the population density

Kleemann
and Abdulai
( 2013 )

Environmental Kuznets
curve

90 devel-
oped and
developing
countries

interrelated way. For Kaldor the engine of economies is the industrial sector and it
is in this sector where this law presents its best results. These conclusions from
Kaldor were obtained for Great Britain with a Verdoorn coefficient around 0.5.
These explanations developed by Kaldor had the implicit idea of circular and
cumulative processes in the economies. In these processes the engine is the external
demand (from exports) that lead to an increase in the output. This increase in the
output promotes an increase in productivity (Verdoorn law) and this fact alone
originates improvements in the salary of efficiency (salary weighted against pro-
ductivity). The improvements in the salary of efficiency enable a reduction in prices
and this increases demand, namely external demand, and subsequently we return to
the beginning of the process and so on.
To better understand the following built model, the literature review is summa-
rized in Table 8.1 .

3 Data Analysis

The data was obtained from the Statistics of Portugal (INE 2013 ) and is relative to
the Portuguese manufacturing sector disaggregated at the NUTs III level, over the
period 2004-2011, and considers the following groups: food industries; manufac-
ture of beverages; tobacco industry; manufacture of textiles; clothing industry;
manufacture of leather and leather products; manufacture of wood and cork and
articles thereof, except furniture, and manufacture of works of straw and plaiting
materials; manufacture of pulp, paper, paperboard, and articles thereof; printing and