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Agriculture as a Determinant of Zambian Economic Sustainability

Author

Listed:
  • Joseph Phiri

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Karel Malec

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Socrates Kraido Majune

    () (School of Economics, University of Nairobi, Nairobi 30197-00100, Kenya)

  • Seth Nana Kwame Appiah-Kubi

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Zdeňka Gebeltová

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Mansoor Maitah

    () (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Kamil Maitah

    () (Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences, 16500 Prague, Czech Republic)

  • Kamal Tasiu Abdullahi

    () (Department of Economics, Social Sciences Institute, Marmara University, 34722 Istanbul, Turkey)

Abstract

For several years, the Zambian economy relied on the mining sector, which has been affected by fluctuations in commodity prices. The new century enhanced the calls for economic diversification, with the agricultural, manufacturing, and services sectors amongst those pronounced. This article focused on the role of agriculture in supporting the economy, particularly, the effect of agriculture on economic growth. The data analyzed was reviewed for the period 1983–2017. The ARDL Bounds Test was applied in order to meet the said objectives. The ECM results suggest that agriculture, manufacturing, services, and mining converge to an equilibrium and affect economic growth at the speed of adjustment of 90.6%, with the effect from agriculture, mining, and services being significant. The impact of agriculture on economic growth was significant in both the short-run and long-run, with coefficient unit effects of 0.428 and 0.342, respectively. The effects are strong because more than two-thirds of the rural population rely on farming, and agriculture has stood as a catalyst for food security. For the effect of agriculture to be much more profound, farmers must be supported with adequate infrastructure, accessibility to markets, farming inputs, better irrigation techniques, which would address the problem of reliance on rain, all of which were inconsistent in the last decade. Additionally, governments must ensure the institutionalization of food processing industries which add more value to the national income.

Suggested Citation

  • Joseph Phiri & Karel Malec & Socrates Kraido Majune & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Mansoor Maitah & Kamil Maitah & Kamal Tasiu Abdullahi, 2020. "Agriculture as a Determinant of Zambian Economic Sustainability," Sustainability, MDPI, Open Access Journal, vol. 12(11), pages 1-14, June.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4559-:d:366759
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    References listed on IDEAS

    as
    1. Block, Steven A., 1999. "Agriculture and economic growth in Ethiopia: growth multipliers from a four-sector simulation model," Agricultural Economics, Blackwell, vol. 20(3), pages 241-252, May.
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    4. Seth Nana Kwame Appiah-Kubi & Karel Malec & Mansoor Maitah & Sandra Boatemaa Kutin & Ludmila Pánková & Joseph Phiri & Orhan Zaganjori, 2020. "The Impact of Corporate Governance Structures on Foreign Direct Investment: A Case Study of West African Countries," Sustainability, MDPI, Open Access Journal, vol. 12(9), pages 1-15, May.
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    7. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
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    Citations

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    Cited by:

    1. Paweł Dziekański & Piotr Prus, 2020. "Financial Diversity and the Development Process: Case study of Rural Communes of Eastern Poland in 2009–2018," Sustainability, MDPI, Open Access Journal, vol. 12(16), pages 1-25, August.
    2. Seth Nana Kwame Appiah-Kubi & Karel Malec & Sandra Boatemaa Kutin & Mansoor Maitah & Michael Chanda Chiseni & Joseph Phiri & Zdeňka Gebeltová & Sylvie Kobzev Kotásková & Kamil Maitah, 2020. "Foreign Ownership in Sub-Saharan Africa: Do Governance Structures Matter?," Sustainability, MDPI, Open Access Journal, vol. 12(18), pages 1-15, September.

    More about this item

    Keywords

    agriculture; economic sustainability; economic growth; ARDL bounds test; Zambia;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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