Importance of the Improvement in the Agricultural Technology of Sub-Saharan Africa on Local Economic Development and International Trade

Mihasina Harinaivo Andrianarimanana,Pu Yongjian

doi:10.3390/su13052555

Mihasina Harinaivo Andrianarimanana, Pu Yongjian

Open Access

https://doi.org/10.3390/su13052555

Copy DOI

Journal: Sustainability	Publication Date: Feb 26, 2021
Citations: 1	License type: CC BY 4.0

Affiliation: Chongqing University

Abstract

This study assesses the impacts of technological innovation in Sub-Saharan African agriculture on local and global economies. Using the Eaton–Kortum model, with θ = 4.0875, the results show that comparative advantage’s positive impact on agricultural trade more than offsets the negative impacts of geography barriers. Sub-Saharan Africa is among the least competitive region with respect to agriculture production. This is due to its low value of the technology parameter, about 0.16 compared to the North American’s one (93.23). We found that increasing the technology of a country in Sub-Saharan Africa would increase world trade volume within the range of 0.02 to 0.19%. It would increase the local agricultural monthly wage and the welfare of farmers in the Sub-Saharan African region. Therefore, to improve technology in the Sub-Saharan African region, policymakers need to attract foreign direct investment by making incentives and increasing labor skills. This study adds to the literature by determining the contribution of the agricultural sector in Sub-Saharan Africa in global economic development through international trade. It also informs policies on the reduction of poverty and food insecurity around the world in order to achieve some of the Sustainable Development Goals.

Highlights

According to mercantilism, international trade is a way for a country to acquire wealth by maintaining a trade surplus, which means a higher export value than import value [1].Since the sixteenth century when the mercantilism theory first emerged, debates among economists and policymakers have persisted regarding the role of international trade in promoting economic development [2].With four out of five people below the international poverty line living in rural areas, poverty reduction efforts need to primarily focus on increasing agricultural productivity, especially in Sub-Saharan Africa and in South Asia
African countries have a low capital devoted to agricultural research and development (R&D), the lowest agricultural productivity, and the lowest education attainment compared to other countries
This study examined the comparative advantage and competitiveness of agriculture in Sub-Saharan Africa

Summary

Introduction

With four out of five people below the international poverty line living in rural areas, poverty reduction efforts need to primarily focus on increasing agricultural productivity, especially in Sub-Saharan Africa and in South Asia. To meet the first objective of the Sustainable Development Goals (SDG), least developed countries (LDCs) need to increase their productivity to alleviate poverty. Higher agricultural productivity will in turn increase the global food supply to address the second SDG objective of achieving food security [7]

Methods

Results

Discussion

Conclusion