The broadening of the concept of economic development to include equity measures, such as employment and income distribution in addition to the conventional out pit measures, is now firmly established. This changing focus has been hastened by the advent of the Green Revolution which, although it has undoubtedly contributed to increased output in many countries, 1as often had an adverse effect on employment and income distribution. Subsequently a considerable body of research on agricultural development has been directed toward measuring the impact of new food grains technologies on employment and income distribution in agriculture and formulating agricultural development strategies which ensure rapid increases in agricultural production through application of labor intensive techniques on both large and small farms. Although there is clearly a need to conduct this partial equilibrium analysis in the agriculture sector, a comprehensive evaluation of agricultural development strategies requires a general equilibrium analysis of the effects of agricultural strategies on growth, employment and income distribution in all sectors of the economy; that is both the direct effects in the agricultural sector and the indirect effects in other sectors of the economy arising from agricultural-non agricultural interactions. Although the importance of the indirect effects of agricultural development strategies is well recognized (Shaw [1971], Ridker [1971] and Kilby and Johnston [1971]) there has been little empirical analysis of these effects.

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