Role of agriculture in the process of structural transformation in West Africa
DOI:
https://doi.org/10.18559/rielf.2024.2.1840Keywords:
random-effect panel, literacy rate, agricultural value added, agricultural employment, agricultureAbstract
Purpose: The objective of this article is to analyze the role of agriculture in the process of structural transformation in West Africa.
Design/methodology/approach: We use a random-effects panel model with World Bank and UNCTAD data from 16 countries over the period 1980–2018.
Findings: The results of this analysis show that agricultural value added and the productive capacity index are powerful accelerators of structural transformation in West African countries. On the other hand, the human capital, the agricultural employment rate and the adult literacy rate are obstacles to this process. Furthermore, FDIs (Foreign Direct Investments) have proven to be a powerful channel for this dynamic. Overall, the results suggest that governments should ensure the modernisation of the agricultural sector to make it more competitive and concentrate investments in high productivity sectors.
Originality/value: Finally, they urge policy makers to create an enabling environment for increased and sustained mobilisation of FDI, given these, combined with agricultural employment, significantly amplify structural transformation.
JEL Classification
Agricultural Labor Markets (J43)
Industrial Organization and Macroeconomics: Industrial Structure and Structural Change • Industrial Price Indices (L16)
Africa • Oceania (N17)
General (Q10)
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