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Abstract
This paper identifies the factors that influence agriculture’s percentage contribution to gross domestic (GDP) for a group of Latin American and Caribbean (LAC) countries that belong to the medium category of the UNDP Human Development Index (HDI). In line with theories of economic growth it was hypothesized that the percentage contribution of agriculture to GDP is influenced by factors associated with the level of economic development of the country and the degree of competitiveness of its agricultural sector. The analysis employed the use of a Random Effects panel regression model for a 30 year period (1980-2009) for the study countries. Based on the analysis, it was found that rural population, life expectancy, foreign direct investment, the rate of inflation, level of exports of all goods and services and the ratio of agricultural exports to agricultural imports significantly determined the percentage contribution of agriculture to GDP in the selected countries.