Technology, energy use, and agricultural value addition nexus: an exploratory analysis from SSA countries

This paper examines whether technology and energy have a role to play in agriculture value addition in nine sub-Saharan African countries for a sample period between 1981 and 2015. We employ the Autoregressive Distributed Lag modelling technique to examine the relationship among the variables. Models with technology, energy use, and a combination of technology and energy were considered, respectively. Only Nigeria recorded a positive and significant impact of technology on its agricultural value addition in both the short run and long run in the first model. In the second model, energy use positively and significantly influenced agricultural value addition in two countries (Botswana and South Africa) in the short run. However, the long-run coefficients of energy use were found to be positive and significant for Benin and South Africa. In the third model, short-run coefficients of technology were largely positive but statistically insignificant across the countries, while its long-run coefficient was largely positive but only statistically significant for Nigeria. Also, the short-run effect of energy use remained positively significant for Botswana and South Africa as observed in the earlier model. However, its long-run effect was only positive and statistically significant in three countries (Benin, South Africa, and Togo). Thus, the study recommends the need for huge investment in technology and energy use as well as the sensitisation of local farmers in adopting technology to further enhance the quality of their output.