Twenty-fourth Issue

Effect of the Economic Reform and Globalization on Yemeni Agriculture

Shafal Ali Mohsen Omeer
Summary

Economic reform programs are one of the tools of globalization and its mechanism in Yemen, where executives are dealing with the treatment of structural imbalances of the economic sectors. This study has addressed imbalances that plague the agricultural sector. It has adopted a statistical analysis of the pattern of change in the percentage contribution of agriculture to GDP ( variable structural), the comparison between the periods before and after economic reform model, taking similar variables for both periods, so as to show amount of changes in the independent variables. Due to overlapping of macroeconomic variables in influencing and being influenced by each other, the study used quantitative model containing structural variables of two – way influence. There were positive results for the variables: exchange rate, per capita gross domestic product ( GDP), the rate of capital accumulation and agricultural imports in the period of economic reform The farm prices during the two terms ( before and after economic reform) has shown an inverse relationship with the structural change, which confirms that the high farm price coincided with a decline in the value of the structural change variable as a result of Yemeni farmer turning to qat cultivation being a crop of relatively higher price as compared to other crops the cultivation of which has become costlier due to the suspension of government subsidy.

Key Words :Economic Reform, Structural Adjustment, Globalization, Yemen

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