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Agricultural trade and employment: links, evidence and policy implications

FAO Trade Policy Briefs No. 32 Trade & Employment










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    Policy brief
    Trade and Related Policies for Decent Rural Employment 2016
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    The agriculture sector accounts for the vast majority of employment and output in most developing countries. Trade in agricultural products has the potential to significantly impact rural employment, incomes and poverty, by affecting the availability and price of food, as well as wages in this sector. To achieve positive growth and employment outcomes, development strategies should involve improved consideration of both agricultural trade policies and domestic agricultural policies. Moreover, a key consideration in designing the optimal policy package should be the level of development of a country’s agriculture sector, and the stage of structural transformation in an economy.
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    Brochure, flyer, fact-sheet
    Information Note #7: Agricultural Trade and Decent Rural Employment 2016
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    Given the significance of agriculture to rural livelihoods, agricultural trade has the potential to significantly impact rural employment and incomes. Agriculture is the largest employer of the world’s poor, most of whom live in rural areas. As developing economies grow, and undergo structural transformation, employment tends to shift away from agriculture into other sectors, such as industry or services. Along the path of structural transformation, agricultural trade can speed up shifts in econ omic activity from agriculture to other sectors, resulting in asymmetries between sectors in terms of output growth and incomes, thereby posing both risks and opportunities for decent rural employment in developing countries.
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