The relationship between knowledge based economy and agriculture’s value added

Agriculture facilitates and accelerates the economic growth and development through creating economic surplus, providing foreign currency for imports of capital and intermediate goods and supply of raw material supply requirements of the industry. Regarding great potential and capabilities, science and technology can improve productivity of agriculture section, the aim of this paper is to investigate the relationship between knowledge based economy and agriculture’s value added . The empirical results from employing panel data technique suggest the positive relationship between knowledge based economy and agriculture’s value added in both developed and developing countries. In comparison, it can be noted that the impact of knowledge based economy agriculture’s value added in developed countries is more than developing countries. This may be the result of the gap between production and application of knowledge and information in developing countries. Therefore, it can be suggested that developing countries should improve their performances in the knowledge based economy indicators and its application in agriculture sector to achieve higher value added.