Productivity Growth In sub-Saharan Africa Research Articles

New trend of agricultural productivity growth in sub-Saharan Africa

The literature argues that increasing the total factor productivity in agriculture is prior to off-farm growth and poverty alleviation. The debate persists on a robust estimate of agricultural productivity growth that includes multifactor. So, this study applies the stochastic frontier analysis with heteroscedasticity correction, to examine the total factor productivity growth in a sample of 23 countries in Sub-Saharan Africa over the 1991-2015 period. The results show that the estimated elasticity of production with respect to land, machinery capital and fertilizer are positive and statistically significant. Whereas, the estimated elasticity of production to labour is positive but not significant. This result calls into question the productivity of labour in the African agricultural system. After the 2000s, the average annual growth rate of agricultural productivity is estimated at 3.13% for the sample countries. A net increase in total factor productivity is accompanied by a significant increase in technological change. Scale efficiency change is the major barrier to TFP growth in African agriculture. So, it is recommended that public or private decision-makers must stress more on: (i) human capital investment along with more efficient management of cultivated land and, (ii) the acceleration of agricultural technology adoption.

Does Health Investment Matter for Productivity Growth in Sub-Saharan Africa? Empirical Insights from Income and Regional Economic Grouping Perspectives

Does Health Investment Matter for Productivity Growth in Sub-Saharan Africa? Empirical Insights from Income and Regional Economic Grouping Perspectives

Fostering Labour Productivity Growth for Productive and Decent Job Creation in Sub-Saharan African Countries: the Role of Institutional Quality

The majority of jobs created in Africa are informal, low-paying jobs that do not allow employees to live decently. An improvement in labour productivity will contribute to the creation of productive and decent jobs. The objective of this work is to study the effect of institutional quality on labour productivity in sub-Saharan Africa (SSA). To do this, we consider a panel of 31 countries over the period from 1996 to 2016. Thus, we construct an empirical model based on the stochastic frontier production function developed by Battese and Coelli (1995), to which we apply panel estimation techniques (static and dynamic), particularly with system generalized method of moments (System-GMM) and within estimators. Our results show that institutional quality indicators have a positive and significant influence on labour productivity. Political stability, government effectiveness and the rule of law are the indicators that contribute most to increasing labour productivity in sub-Saharan Africa. A series of robustness tests are performed to confirm our results. Specific indicators that contribute to labour productivity growth in sub-Saharan Africa are identified for the different sectors of the economy (agriculture, industry, services). These results enable us to identify several policy implications relevant to African decision-makers in order to create productive and decent jobs, especially for young people.

Understanding Agricultural Productivity Growth in Sub-Saharan Africa: An Analysis of the Nigerian Economy

In recent times, agricultural sector has returned to the forefront of development issues in Nigeria given its contribution to employment creation, sustainable food supply and provision of raw materials to other sectors of the economy. In lieu of that, this study examines the impact of agriculture on the economic growth in Nigeria using annual time series data covering the sample period of 1981 to 2018. To analyse the data collected, Autoregression Distributed Lag (ARDL) model through the bounds testing framework is employed to measure the presence of cointegrating relations between real GDP, agricultural productivity, labour force, and agricultural export. Results show the presence of both short-run and long-run relationship among the variables, and that agriculture has a positive and significant impact on economic growth in Nigeria. These findings inform the Nigerian government on the need to expedite labour force (human capital) and agricultural export (non-oil) development with the view to achieving sustainable growth and development. In addition, developing skills and competencies of labour force through capacity building in the agricultural sector will encourage research and development thereby increase the export size, hence essential for long-term growth.

Export Markets and Firm Productivity in Sub-Saharan Africa

ABSTRACT In this paper, we analyze the significance of export market destinations for productivity growth in Sub-Saharan Africa. We use matching and difference-in-differences techniques to evaluate these questions. We find that exports generate productivity growth among exporters, with the more productive firms exporting to multiple markets. We also find that changes in export markets are as a result of firm-level productivity growth suggesting that firms will sell products to additional markets if their productivity level increases hence the changes in export markets are correlated with productivity growth. Moreover, we find that exporting to multiple markets raises the firm’s productivity growth by 42.3%, higher than exporting to only one export market at a time. These findings hold at the country and industry level and are robust to other factors that may correlate with increased productivity like age, size and ownership. At the policy level, policies on export promotion should provide information on how prospective exporters can enter into African export markets. Firms that have started exporting should be helped with credit access to expand their sales to other additional export markets.

Export Markets and Firm Productivity in Sub-Saharan Africa

In this paper, we analyze the significance of export market destinations for productivity growth in Sub-Saharan Africa. We use matching and difference-in-differences techniques to evaluate these questions. We find that exports generate productivity growth among exporters, with the more productive firms exporting to multiple markets. We also find that changes in export markets are as a result of firm-level productivity growth suggesting that firms will sell products to additional markets if their productivity level increases hence the changes in export markets are correlated with productivity growth. Moreover, we find that exporting to multiple markets raises the firm’s productivity growth by 42.3%, higher than exporting to only one export market at a time. These findings hold at the country and industry level and are robust to other factors that may correlate with increased productivity like age, size and ownership. At the policy level, policies on export promotion should provide information on how prospective exporters can enter into African export markets. Firms that have started exporting should be helped with credit access to expand their sales to other additional export markets.

Technology Adoption and Growth in sub-Saharan African Countries

This study analyzes the relationship between information and communication technologies (ICTs) and labor productivity growth in sub-Saharan Africa over the period 1975–2010. The results show that fixed-line and mobile telecommunications have a positive and significant impact on growth after penetration rates reach a certain critical mass. The thresholds are identified using nonparametric methods. Penetrations rates of between 20% and 30% for telephones and 5% for internet usage trigger increasing returns. FDI and openness are found to improve productivity and to help ICTs boost growth. Financial development serves as a possible transmission channel for the growth-enhancing effects of ICTs.

PRODUCTIVITY GROWTH, HUMAN CAPITAL AND DISTANCE TO FRONTIER IN SUB-SAHARAN AFRICA

Using the Malmquist productivity index and panel data methods, we study the role of total human capital and its composition in the technological “catch –up” process and productivity growth via the channels of innovation and adoption of technology in a panel of 19 sub -Saharan African countries between 1960 and 2003. Our findings indicate different roles played by the composition of human capital and a follow-on consistent and significant contribution of total human capital to productivity growth. Primary and secondary school attainment (unskilled labour) contribute significantly to the adoption of technology(the main source of productivity growth in sub-Saharan Africa) whilst tertiary school attainment (skilled labour) plays a significant role in local innovation. Total human capital on the other hand, contribute more significantly to the adoption of technology and innovation. Technological “catch-up” remains a significant element in productivity growth in sub-Saharan Africa and economies with higher tertiary school attainment(skilled labour) and higher total human capital tend to contribute significantly to productivity growth through the channel of technological “catch-up”. Our results rather point towards a circuitous depiction of the symbiotic characteristics of the composition of human capital in enhancing productivity growth in sub -Saharan Africa and hence efforts in scaling- up investments in human capital by governments, development partners etc should not be too concentrated on one composition of human capital.

Estimating the potential for expanding smallholder irrigation in Sub-Saharan Africa

Smallholder irrigation may considerably contribute to agricultural productivity growth in Sub-Saharan Africa. However, the full potential of expanding smallholder irrigation under alternative irrigation technologies is not known. This paper presents a study to assess the irrigation expansion potential for four smallholder irrigation technologies: motor pumps, treadle pumps, communal river diversion, and small reservoirs. An integrated modeling system that combines GIS data analysis, biophysical and economic predictive modeling, and crop mix optimization techniques was developed for the assessment.The study revealed a large potential for profitable smallholder irrigation expansion in Sub-Sahara Africa. Area expansion potential is 30millionha for motor pumps, 24millionha for treadle pumps, 22millionha for small reservoirs and 20millionha for communal river diversions. The technologies can benefit between 113 and 369 million rural people in the region generating net revenues of US $ 14–22billion/yr, depending on technology. Final expansion potential depends on irrigation technology cost and commodity price developments.

The impact of agricultural research on productivity and poverty in sub-Saharan Africa

While it is widely recognized that agricultural research is a key driver of broad-based technological change in agriculture that benefits the poor in many different ways, little is known about its aggregate impacts on productivity growth and poverty reduction in sub-Saharan Africa (SSA). Using a polynomial distributed lag structure for agricultural research within a simultaneous system of equations framework, this paper first demonstrates that agricultural research contributes significantly to productivity growth in SSA. Productivity growth is again shown to raise per capita incomes, with income increases finally having significant poverty-reducing effects. With an aggregate rate of return of 55%, the payoffs to agricultural research are also impressive. Agricultural research currently reduces the number of poor by 2.3 million or 0.8% annually. While the actual impacts are not large enough to more than offset the poverty-increasing effects of population growth and environmental degradation, the potential impacts of agricultural research are far greater. Apart from low research investments, SSA faces several constraints outside the research system that hinder realization of potential research benefits. The results show that doubling research investments in SSA would reduce poverty by 9% annually. However, this would not be realized without more efficient extension, credit, and input supply systems.