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How can less developed countries economies produced by developing its primary sector as agriculture?
Less developed countries economies cannot grow by developing its primary sector like agriculture since agriculture in LDCs tends to suffers through:
• Low value added and labour along with zero marginal products (Lewis model)
• Low productivity through traditional agricultural methods and land ownership, lack of complementary capital, resulting within a subsistence standard of living into rural regions.
• Natural disasters that can devastate crops
• Volatile prices low YED and PED, output and price instability
• Low and unstable incomes due to, unfavourable and deteriorating terms of trade,
• Agricultural protection in developed countries (for example EU).
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