A Comparative Analysis of the Impact of Agricultural Exports on Economic Growth of ECOWAS Countries

Abstract

Towards the acceleration of the attainment of sustainable growth, most countries have focused on agricultural exports as a means of driving their economy. Developing countries of Africa are highly dependent on the agricultural sector and agricultural exports are a major determinant of economic growth of these countries. However, the impact of agricultural exports on economic growth of ECOWAS countries remains unclear. This study therefore evaluates the impact of agricultural exports on the economic growth of fifteen ECOWAS countries using panel data for the period 1980-2013. Variables employed are labour force participation rate, capital stock, agricultural exports, non-agricultural exports, inflation and economic growth. The results of the fixed-effect model show that agricultural exports have not impacted significantly on the economic growth of ECOWAS countries such as Côte d'Ivoire and Nigeria with respect to the Republic of Benin, which is the selected baseline. The study also analysed the country combined effect of the agricultural exports and found that it was significant but the rate of impact was weak. The study recommends, among others, that even though agricultural exports had a significant impact on economic growth, there is still a need for ECOWAS governments to improve their agricultural sector as its significance is more noticeable in some countries such as Côte d'Ivoire and Nigeria.

Evaluation of the Impacts of Non-Oil Exports on Economic Growth in Nigeria Between 1986-2018

“…This shows the role of non-oil exports in contributing to the growth of Nigerian economy which is largely dependent on oil revenue whose shock would have adverse effects on the economy. This assertion has been supported by the works of Gbaiye, Ogundipe, Osabuohien, Olugbire, Adeniran, Bolaji-Olutunji, Awodele and Aduradola (2013), Edeme, Ifelunini and Nkalu (2016) and Fiiwe and Turakpe (2017).…”

“…The World bank (2016) stated in clear terms that the Nigerian oil and gas sector accounts for only 11% of gross domestic products and employs less than 3% of Nigeria's working population and still accounts for more than 90% of foreign exchange earnings. The implication of this is that the dynamics of the economy is at the whims and caprices of the price of oil, which for the most part, has been volatile (Kromtit, Kanadi, Ndangra & Lado, 2017) Developing countries desire to achieve sustainable growth and development and exports are generally perceived as a motivating factor to achieving this, and meeting this challenge is crucial for the Economic Community of West African States (ECOWAS) to reduce food dependency and improve the current unfavorable terms of trade by processing products and increasing value added (Edeme, Ifelunini & Nkalu, 2016). Subsequent to the assertion of Shah, Abrar-ul-haq and Farooq (2015), economic growth is a primary and a crucial aim of developing countries, and a recurrent theme in the trade and development literature is the role of exports as it is considered as an engine for economic growth.…”

Imports, Exports and Economic Growth in MIST Countries: Toda-Yamamoto Causality Analysis

“…Bazı çalışmalarda ülkelerarası veriler ile sıra korelasyon yöntemi kullanılarak hipotez test edilmiştir (Kravis, 1970, s.869-870;Tyler, 1981, s.129;Ijirshar, 2015, s.121). İkinci grup çalışmalarda regresyon tekniği ile en küçük kareler ve panel veri yöntemleri kullanılarak yapılan çalışmalardır (Balassa, 1985;Ram, 1985;Mbaku, 1989;Alam, 1991;De Gregorio, 1992;Amirkhalkhali ve Dar, 1995;Fosu, 1996;Çetintaş ve Barişik, 2009;Furuoka, 2009;Herzer, 2010;Dreger ve Herzer, 2011;Yardımcıoğlu ve Gülmez, 2013;Şahbaz, Ağır ve Yanar, 2014;Topallı ve Alagöz, 2015;Edeme, Ifelunini ve Nkalu, 2016;Ee, 2016).…”

Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa

“…Non-oil exports are seen as a quintessential factor for emerging economies to attain economic growth and development. Economic Community of West African States (ECOWAS) to meet this need, has been prioritizing non-oil exports to decrease food reliance, trade deficit, and strengthen exchange rate (Edeme, Ifelunini & Nkalu, 2016). In the words of Shah, Abrar-ul-haq, and Farooq (2015), every emerging economy wants to attain the desired level of growth and development by utilizing their areas of comparative advantage especially through non-oil export promotion which is considered as pivotal to the realization of growth and development objectives of the government.…”