IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1069.html
   My bibliography  Save this paper

Using a spatial growth model to provide evidence of agricultural spillovers between countries in the NEPAD CAADP Framework:

Author

Listed:
  • Sanyal, Prabuddha
  • Ulimwengu, John

Abstract

The NEPAD Comprehensive Africa Agriculture Development Programme (CAADP) has been endorsed by African Heads of State and Governments as a vision for the restoration of agricultural growth, food security, and rural development in Africa. The program aims at stimulating agriculture-led development to alleviate poverty and hunger, and achieve sustainable food security. The creation of a union is often rationalized on grounds of moving the equilibrium toward the first best solution whenever independent policies generate spillovers. This arises as a common agenda can significantly reduce the scope of free-riding behavior among member countries. In addition, cross-border externalities arising out of higher levels of market integration entails countries to agree on policy coordination. Using a Spatial Durbin Model for panel data, the present study explores the extent and magnitude of agricultural production spillover that might validate the adoption of CAADP agenda among African countries, especially among Sub-Saharan African countries. Overall, our results suggest the presence of positive and significant agricultural production spillover. No evidence of beggar-thy-neighbor or negative spillover policies was found; on average, each country received 2.5 percent growth as a result of spillover. Finally, our results suggest that convergence dynamics is much stronger when spillover is accounted for which provides a rationale for a common agenda such as CAADP.

Suggested Citation

  • Sanyal, Prabuddha & Ulimwengu, John, 2011. "Using a spatial growth model to provide evidence of agricultural spillovers between countries in the NEPAD CAADP Framework:," IFPRI discussion papers 1069, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1069
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01069.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dorward, Andrew R. & Fan, Shenggen & Kydd, Jonathan & Lofgren, Hans & Morrison, Jamie & Poulton, Colin & Rao, Neetha & Smith, Laurence & Tchale, Hardwick & Thorat, Sukhadeo & Urey, Ian & Wobst, Peter, 2004. "Institutions and economic policies for pro-poor agricultural growth," DSGD discussion papers 15, International Food Policy Research Institute (IFPRI).
    2. Giancarlo Corsetti & Paolo Pesenti, 2001. "Welfare and Macroeconomic Interdependence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 421-445.
    3. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
    4. Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
    5. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    6. nan, 2002. "Reforming agricultural markets in Africa: Achievements and challenges," IFPRI books, International Food Policy Research Institute (IFPRI), number 0-8018-7145-X edited by Delgado, Christopher L.; Gabre-Madhin, Eleni Z.; Johnson, Michael; Kherallah, Mylene; Minot, Nichola.
    7. Alesina, Alberto & Angeloni, Ignazio & Etro, Federico, 2001. "The Political Economy of International Unions," CEPR Discussion Papers 3117, C.E.P.R. Discussion Papers.
    8. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    9. Nin-Pratt, Alejandro & Yu, Bingxin, 2008. "An updated look at the recovery of agricultural productivity in Sub-Saharan Africa," IFPRI discussion papers 787, International Food Policy Research Institute (IFPRI).
    10. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    11. Diao, Xinshen & Hazell, Peter B. R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    12. Kherallah, Mylene & Delgado, Christopher L. & Gabre-Madhin, Eleni Zaude & Minot, Nicholas & Johnson, Michael E., 2002. "Reforming agricultural markets in Africa," Food policy statements 38, International Food Policy Research Institute (IFPRI).
    13. repec:bla:devpol:v:22:y:2004:i:6:p:611-622 is not listed on IDEAS
    14. Randy Stringer & Prabhu Pingali, 2004. "Agriculture's Contributions to Economic and Social Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 1-5.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Badibanga, Thaddee Mutumba & Ulimwengu, John M., 2012. "The Sophistication and Diversification of the African Agricultural Sector: A Product Space Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124498, Agricultural and Applied Economics Association.

    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. Birner, Regina & Resnick, Danielle, 2010. "The Political Economy of Policies for Smallholder Agriculture," World Development, Elsevier, vol. 38(10), pages 1442-1452, October.
    2. Badibanga, Thaddée & Ulimwengu, John M., 2012. "The sophistication and diversification of the African agricultural sector: A product space approach," IFPRI discussion papers 1156, International Food Policy Research Institute (IFPRI).
    3. Diao, Xinshen & Hazell, Peter B. R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    4. Luc Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 3345-3361.
    5. Spielman, David J. & Byerlee, Derek & Alemu, Dawit & Kelemework, Dawit, 2010. "Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles," Food Policy, Elsevier, vol. 35(3), pages 185-194, June.
    6. Shiferaw, Bekele A. & Obare, G. A. & Muricho, Geoffrey, 2006. "Rural institutions and producer organizations in imperfect markets: experiences from producer marketing groups in semi-arid eastern Kenya," CAPRi working papers 60, International Food Policy Research Institute (IFPRI).
    7. Schiesari, Carolina & Mockshell, Jonathan & Zeller, Manfred, 2016. "Farm input subsidy program in Malawi: the rationale behind the policy," MPRA Paper 81409, University Library of Munich, Germany, revised 2017.
    8. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    9. Byerlee, Derek & Spielman, David J. & Alemu, Dawit & Gautam, Madhur, 2007. "Policies to promote cereal intensification in Ethiopia: A review of evidence and experience," IFPRI discussion papers 707, International Food Policy Research Institute (IFPRI).
    10. Spielman, David J. & Mekonnen, Dawit K. & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters, in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4, International Food Policy Research Institute (IFPRI).
    11. Jonathan Kydd & Andrew Dorward, 2004. "Implications of market and coordination failures for rural development in least developed countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(7), pages 951-970.
    12. Léopold Ghins & Alban Mas Aparisi & Jean Balié, 2017. "Myths and realities about input subsidies in sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 35, pages 214-233, October.
    13. Shephard Siziba & Kefasi Nyikahadzoi & Joachim Binam Nyemeck & Aliou Diagne & Adekunle Adewale & Fatunbi Oluwole, 2013. "Estimating the impact of innovation systems on maize yields: the case of Iar4d in southern Africa," Agrekon, Taylor & Francis Journals, vol. 52(3), pages 83-100, September.
    14. Leakey, Roger & Kranjac-Berisavljevic, Gordana & Caron, Patrick & Craufurd, Peter & Martin, Adrienne M. & McDonald, Andy & Abedini, Walter & Afiff, Suraya & Bakurin, Ndey & Bass, Steve & Hilbeck, Ange, 2009. "Impacts of AKST on development and sustainability goals," Book Chapters,, International Water Management Institute.
    15. Bev Wilson & Mallory L. Rahe, 2016. "Rural prosperity and federal expenditures, 2000–2010," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 3-26, March.
    16. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    17. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    18. Olga Demidova, 2021. "Methods of spatial econometrics and evaluation of government programs effectiveness," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 107-134.
    19. Siziba, Shephard & Nyikahadzoi, Kefasi & Nyemeck, Joachim Binam & Diagne, Aliou & Adewale, Adekunle & Oluwole, Fatunbi, 2013. "Estimating the impact of innovation systems on maize yields: the case of Iar4d in southern Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 52(3), March.
    20. Liverpool-Tasie, Lenis Saweda O. & Jayne, Thomas & Muyanga, Milu & Sanou, Awa, "undated". "Are African Farmers Experiencing Improved Incentives To Use Fertilizer?," Feed the Future Innovation Lab for Food Security Policy Research Papers 270632, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:fpr:ifprid:1069. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.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.