IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332439.html
   My bibliography  Save this paper

Agricultural Productivity Growth in Sub-Saharan Africa, 1990-2010: the role of Investment, Governance and Trade

Author

Listed:
  • Shittu, Adebayo M.
  • Odine, Agatha I.

Abstract

The 2013 Human Development Report recommends the need to strengthen regional integration and South– South cooperation as part of measures to harness the wealth of knowledge, expertise, and development thinking in the South towards achieving more robust growth and development of the developing countries. Past experiences of many African countries with globalization and trade, however suggest the need for caution and that actions need to be much more informed. Against this background, this study examined the role of international trade and economic integration as well as quality of governance and public/private investment in explaining the wide differences in agricultural productivity growth performance among countries in SSA between 1990 and 2010. The study was based on a panel data on 42 countries in SSA over the period 1990 – 2010. The study was undertaken within the combined framework of neo-classical and endogenous growth theories. Agricultural Labor Productivity (ALP), measured as agricultural value-added per economically active person in agriculture, as well as Malmquist index of agricultural Total Factor Productivity (ATFP) generated by Data Envelopment Analysis, were subjected to neo-classical convergence tests, with influence of various factors on productivity growth assessed within the framework of panel data econometrics in which influences of country specific unobserved heterogeneity were controlled. The study evidences support the need for substantial capital deepening and increase public expenditure to enhance access to infrastructure, strengthen agricultural institutions and support domestic food production as key measures needed to significantly raise agricultural productivity in SSA. In addition, the study identified increased integration into African economies that are yet to be part of any regional economic integration group as well as with the Multilateral Free Trade area between Australia and New Zealand as those with significant and positive impacts on ALP and TFP in SSA respectively. The study thus recommend, support for the ongoing efforts by the African Union (AU) to harmonize policies of various regional economic groups in Africa into forming an African Economic Community with unified trade policies among member state is the right direction to move Africa forward. It also recommends the need for each country to adopt measures appropriate protect the domestic agriculture against unduly stiff competition from better supported and sometimes subsidized agricultural products from the more developed nations as short-medium term policy measures to enhance the ongoing recovery from past neglects.

Suggested Citation

  • Shittu, Adebayo M. & Odine, Agatha I., 2014. "Agricultural Productivity Growth in Sub-Saharan Africa, 1990-2010: the role of Investment, Governance and Trade," Conference papers 332439, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332439
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332439/files/7055.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
    2. Scarlett Epstein, T. & Jezeph, David, 2001. "Development--There is Another Way: A Rural-Urban Partnership Development Paradigm," World Development, Elsevier, vol. 29(8), pages 1443-1454, August.
    3. Alexandra Daskovska & Léopold Simar & Sébastien Bellegem, 2010. "Forecasting the Malmquist productivity index," Journal of Productivity Analysis, Springer, vol. 33(2), pages 97-107, April.
    4. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    5. Bernard, Andrew B. & Durlauf, Steven N., 1996. "Interpreting tests of the convergence hypothesis," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 161-173.
    6. Xavier Irz & Lin Lin & Colin Thirtle & Steve Wiggins, 2001. "Agricultural Productivity Growth and Poverty Alleviation," Development Policy Review, Overseas Development Institute, vol. 19(4), pages 449-466, December.
    7. Robert Evenson & Keith Fuglie, 2010. "Technology capital: the price of admission to the growth club," Journal of Productivity Analysis, Springer, vol. 33(3), pages 173-190, June.
    8. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    9. Rakotoarisoa, Manitra A., 2011. "The impact of agricultural policy distortions on the productivity gap: Evidence from rice production," Food Policy, Elsevier, vol. 36(2), pages 147-157, April.
    10. Fulginiti, Lilyan E. & Perrin, Richard K. & Yu, Bingxin, 2004. "Institutions and agricultural productivity in Sub-Saharan Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 169-180, December.
    11. Poudel, Biswo N. & Paudel, Krishna P. & Zilberman, David, 2011. "Agricultural Productivity Convergence: Myth or Reality?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(1), pages 1-14, February.
    12. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    13. Maddala, G S & Wu, Shaowen, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
    14. Johan Swinnen & Liesbet Vranken, 2010. "Reforms and agricultural productivity in Central and Eastern Europe and the Former Soviet Republics: 1989–2005," Journal of Productivity Analysis, Springer, vol. 33(3), pages 241-258, June.
    15. Keith Fuglie, 2010. "Sources of growth in Indonesian agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 225-240, June.
    16. Lichtenberg, Frank R, 1994. "Testing the Convergence Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 576-579, August.
    17. Rolf Färe & Shawna Grosskopf & Dimitri Margaritis, 2006. "Productivity Growth and Convergence in the European Union," Journal of Productivity Analysis, Springer, vol. 25(1), pages 111-141, April.
    18. Alain de Janvry & Elisabeth Sadoulet, 2010. "Agriculture for Development in Africa: Business-as-Usual or New Departures?-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 19(suppl_2), pages 7-39.
    19. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    20. Baltagi, Badi H & Pinnoi, Nat, 1995. "Public Capital Stock and State Productivity Growth: Further Evidence from an Error Components Model," Empirical Economics, Springer, vol. 20(2), pages 351-359.
    21. Sharmistha Self & Richard Grabowski, 2007. "Economic development and the role of agricultural technology," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 395-404, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paleologos, John M. & Polemis, Michael L., 2013. "What drives investment in the telecommunications sector? Some lessons from the OECD countries," Economic Modelling, Elsevier, vol. 31(C), pages 49-57.
    2. Michée A. Lachaud & Boris E. Bravo‐Ureta, 2021. "Agricultural productivity growth in Latin America and the Caribbean: an analysis of climatic effects, catch‐up and convergence," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 143-170, January.
    3. Korap, Levent, 2010. "OECD ülkeleri için ekonomik yakınsama öngörüsünün zaman serisi panel birim kök yöntemleri ile sınanması [An essay upon testing economic convergence hypothesis with time series panel unit root metho," MPRA Paper 29644, University Library of Munich, Germany.
    4. Cristina Brasili & Luciano Gutierrez, 2004. "Regional convergence across European Union," Development and Comp Systems 0402002, University Library of Munich, Germany.
    5. A M Spiru, 2007. "Inflation convergence in the new EU member states," Working Papers 590260, Lancaster University Management School, Economics Department.
    6. Hengyun Ma & Les Oxley & John Gibson, 2008. "Testing for Energy Market Integration in China," Working Papers in Economics 08/12, University of Canterbury, Department of Economics and Finance.
    7. Pei-Chien Lin & Ho-Chuan Huang, 2012. "Convergence in income inequality? evidence from panel unit root tests with structural breaks," Empirical Economics, Springer, vol. 43(1), pages 153-174, August.
    8. Mauro Costantini & Claudio Lupi, 2005. "Stochastic convergence among European economies," Economics Bulletin, AccessEcon, vol. 3(38), pages 1-17.
    9. Fousekis, Panos, 2007. "Convergence of Relative State-level Per Capita Incomes in the United States Revisited," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-10.
    10. Dimitris Margaritis & Rolf Färe & Shawna Grosskopf, 2007. "Productivity, convergence and policy: a study of OECD countries and industries," Journal of Productivity Analysis, Springer, vol. 28(1), pages 87-105, October.
    11. Bayer Christian & Jüßen Falko, 2007. "Convergence in West German Regional Unemployment Rates," German Economic Review, De Gruyter, vol. 8(4), pages 510-535, December.
    12. Amélie Charles & Olivier Darne & Jean-François Hoarau, 2012. "Convergence of real per capita GDP within COMESA countries: A panel unit root evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 53-71, August.
    13. Olivier Peron & Serge Rey, 2012. "Trade and convergence of per capita income in the Indian Ocean Zone, 1950–2008," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 657-683, December.
    14. Kutan, Ali M. & Yigit, Taner M., 2004. "Nominal and real stochastic convergence of transition economies," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 23-36, March.
    15. Pop, Ionuț Daniel, 2022. "COVID-19 crisis, voters’ drivers, and financial markets consequences on US presidential election and global economy," Finance Research Letters, Elsevier, vol. 44(C).
    16. Markus Eberhardt & Francis Teal, 2011. "Econometrics For Grumblers: A New Look At The Literature On Cross‐Country Growth Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 109-155, February.
    17. George E. Halkos & Michael L. Polemis, 2017. "Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1162-1180, December.
    18. Petreski, Marjan, 2009. "Analysis of exchange-rate regime effect on growth: theoretical channels and empirical evidence with panel data," Economics Discussion Papers 2009-49, Kiel Institute for the World Economy (IfW Kiel).
    19. Freeman, Donald G. & Yerger, David B., 2001. "Interpreting cross-section and time-series tests of convergence: the case of labor productivity in manufacturing," Journal of Economics and Business, Elsevier, vol. 53(6), pages 593-607.
    20. Lopez, Claude & Papell, David H., 2012. "Convergence of Euro area inflation rates," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1440-1458.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.