The agricultural share of a country's total output generally declines in the process of economic growth. The major reason for this is that consumer demand for food increases only slightly with rising incomes. However, a small, open economy can overcome this constraint to the growth of agricultural production by expanding its net exports.
Chile serves as a good example.
The relative long-term constancy of this agricultural share in Chile presents a sharp departure from the experience of most countries. Change in the agricultural share in total output reflects the growth rates of all sectors of the economy. These rates varied considerably over time in Chile as elsewhere. To understand the time path of agricultural development, the causes of the variability in sectoral outputs must be examined as part of the general process of economic growth. The Chilean economy is a particularly interesting case for such a study in view of the various policies that have been tried out in Chile over a short time span.