Sustainable transformation of agriculture in North and Central Asia

This study examines the impact of sectoral transformations in agriculture on sustainable development in North and Central Asia. During the transition period, all countries in the subregion experienced a steady decline in the share of agriculture in gross domestic product. However, the agricultural sector still employs a large proportion of the population, especially in rural areas. An empirical analysis of the links between the transformation of agriculture and selected indicators of the Sustainable Development Goals using a two-stage fixed effects model - using the method of evaluating instrumental variables shows that diversification of output and agricultural openness has a positive effect on the productivity of the sector. That said, while technological growth is negatively impacted by declining marginal incomes, it is important to note that technology is one of the key drivers of economic transformation.