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Decomposition of Green Agriculture Productivity for Policy in Africa: An Application of Global Malmquist–Luenberger Index

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  • Lindikaya W. Myeki

    (Department of Agricultural Economics, University of the Free State, P.O. Box 339, Bloemfontein 9300, South Africa
    National Agricultural Marketing Council, MERC Division, 536 Francis Baard St., Arcadia, Pretoria 0002, South Africa)

  • Nicolette Matthews

    (Department of Agricultural Economics, University of the Free State, P.O. Box 339, Bloemfontein 9300, South Africa)

  • Yonas T. Bahta

    (Department of Agricultural Economics, University of the Free State, P.O. Box 339, Bloemfontein 9300, South Africa)

Abstract

Previous research on agricultural productivity in Africa has focused on conventional Total Factor productivity (TFP) growth rather than Green Total factor productivity (GATFP) growth, thus ignoring the effect of undesirable outputs such as emissions. This has raised concerns about the sustainability of agricultural productivity growth in the continent. The study was designed to examine GATFP growth in agricultural productivity for 49 African nations from 2000 to 2019. We apply the Global Malmquist–Luenberger (GML) Productivity Index, which complies with the sustainable development agenda that promotes greater production of desirable outputs and minimising unwanted outputs. This approach is also compared to Global Malmquist (GM) Productivity Index which ignores unwanted outputs, yielding to conventional TFP growth. We found an average GATFP growth of 0.6% and TFP growth at 0.9% suggesting that the actual agricultural productivity growth is overstated if agricultural emissions are disregarded. Both estimates fell short of the desired annual target of 7% from the Comprehensive African Agriculture Development Programme (CAADP). Regional growth is mostly characterised by high (low) GATFP and TFP except in Southern Africa and East Africa. The two regions represent an ideal situation where GATFP exceeds TFP. At country level growth can be divided into three scenarios: desired growth, where GATFP exceeds TFP; balanced growth with both estimates equivalent; and undesired growth, where TFP exceeds GATFP. Unfortunately, most African nations fall in the last scenario. We conclude that policies must be developed to encourage sustainable agricultural productivity growth in Africa.

Suggested Citation

  • Lindikaya W. Myeki & Nicolette Matthews & Yonas T. Bahta, 2023. "Decomposition of Green Agriculture Productivity for Policy in Africa: An Application of Global Malmquist–Luenberger Index," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1645-:d:1035892
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