Abstract

Agriculture has long been Côte d’Ivoire’s main source of export income and the first largest sector providing employment. For several decades, Ivorian agriculture remained unmodernized. The modernization of agriculture requires both public and private funding. Despite some efforts, financing of agriculture is not effective in Côte d'Ivoire due to the lack of real commitment from the private sector and commercial banks. The results showed that in the long-term agricultural credit and other variables have a positive and significant influence on agricultural added value. It is therefore recommended to increase agricultural credit and extend it to small producers.

Highlights

  • The Ivorian economy has been performing remarkably well since the end of 2011

  • The objective of our study is to show the impact of the financial sector on agricultural development, i.e. how domestic credit provided by the financial sector can impact agricultural added value

  • The financial sector is the engine of economic growth through investment in the various fields of activity, especially in the agricultural sector

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Summary

Introduction

The Ivorian economy has been performing remarkably well since the end of 2011. With a GDP growth rate of -4.4% in 2011 and 10.7 % in 2012, it rose to 9.2% in 2015; 8.8% in 2016 and 8.1% in 2017 (BCEAO Statistical Year, 2017). Between 2012 and 2015, Côte d'Ivoire experienced an average annual GDP growth of 9 % and in 2016 the country was among the world's top 5 in terms of rapid growth thanks to a GDP growth of 7.5% Thanks to these impressive growth figures, Côte d'Ivoire became the world's 94th largest economy in 2016 with a GDP of USD 35.5 billion, an amount destined to grow strongly according to the IMF (Belgian Foreign Trade Agency 2017). The country owes these performances, to the improving of the security climate that restores investor confidence, to the improving of the business climate through the establishment of an investment-facilitating body, the borrowing with international financial institutions and and above all with agriculture, the mainstay of its economic development. In 1960, 87.5% of the population lived in rural areas, 72% in 1970 and 66%

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