Decomposition of agricultural productivity growth in Africa

Mohamed, Abdinur Ali; Rangkakulnuwat, Poomthan; Paweenawat, Sasiwimon Warunsiri

doi:10.1108/ajems-02-2015-0019

Cited by 12 publications

(6 citation statements)

References 15 publications

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“…Third, recent agricultural literature on agro-allied industrialization for development in Africa has largely focused on inter alia: the effect of irrigation on food production (Nonvide, 2017); improving productivity via warehousing systems (Katunze et al, 2017); gender differences among subsistence farmers and the willingness to undertake agribusiness (Coker et al, 2017); the role of the female farmer entrepreneurs in poverty reduction (Nukpeza and Blankson, 2017); multinationals in Africa's food retail businesses (Nandonde and Kuada, 2017); transmission of international food prices (or imported inflation)to African markets (Furceri et al 2016;van Weezel, S., 2016;Fiamohe et al, 2015); the role of value chains in agricultural business (Ndyetabula et al, 2016) and the composition of agricultural productivity (Mohamed et al, 2016). Noticeably missing is that the literature on the nexus between foreign aid and agriculture has not assessed whether ODA for agriculture and rural development is relevant in increasing productivity in agriculture.…”

Section: Theoretical Highlights and Brief Literaturementioning

confidence: 99%

“…The effectiveness of development aid (Nandonde and Kuada, 2017); transmission of international food prices (or imported inflation) to African markets (Furceri et al 2016;Van Weezel, 2016;Fiamohe et al, 2015); the role of value chains in agricultural business (Ndyetabula et al, 2016) and the composition of agricultural productivity (Mohamed et al, 2016). Noticeably, missing is that the literature on the nexus between foreign aid and agriculture has not assessed whether ODA for agriculture and rural development is relevant in increasing productivity in agriculture.…”

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confidence: 99%

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The effectiveness of development aid for agriculture in Sub-Saharan Africa

Ssozi

Asongu

Amavilah³

2019

JES

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Purpose Agriculture is the major source of livelihood for the majority of population in Sub-Saharan Africa but its productivity is not only low it has started showing signs of decline since 2012. The purpose of this paper is to find out whether official development assistance for agriculture is effective. Design/methodology/approach The data for development assistance for agriculture are broken down into the major agricultural sectors in receiving countries. The empirical evidence is based on the two-step system, i.e. generalized method of moments, to assess the degree of responsiveness of agricultural productivity to development assistance. Findings There is a positive relationship between development assistance and agricultural productivity in general. However, when broken down into the major agricultural recipient sectors, there is a substitution effect between food crop production and industrial crop production. Better institutions and economic freedom are found to enable agricultural productivity growth, and to increase the effectiveness of development assistance. The structural economic transformation associated with agricultural development assistance is also found to be weak. Practical implications Allocation of development assistance for agriculture is primarily determined by need, although expected effectiveness also increases the assistance receipts. Agricultural assistance policies could focus more on building productive capacity to reduce the need while boosting effectiveness. Originality/value Breaking down data into agricultural recipient sectors and controlling for the potential spurious correlation under the assumption that more development assistance could be allocated, where agricultural productivity is already increasing due to some other factors.

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Section: Theoretical Highlights and Brief Literaturementioning

confidence: 99%

mentioning

confidence: 99%

The effectiveness of development aid for agriculture in Sub-Saharan Africa

Ssozi

Asongu

Amavilah³

2019

JES

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“…However, the study also found that sectors and/or subsectors that were primarily dependent on domestic demand did not perform to the best of their potential, although technological change had a positive impact on the sectors' growth performance. Similarly, Mohamed et al (2016) decomposed TFP changes in the agriculture sector in ten African countries by using a panel data set for 1980-2008, with a fixed effects model applied to a translog production function. The results of the study supported the claim that the agricultural sector in these ten African economies had low TFP-a result already established in the literaturebut technological change had a positive impact on the growth of the sector, leading to the suggestion that credit should be made available to farmers as part of the agricultural development programme in the region, to improve TFP.…”

Section: Review On the South African Economymentioning

confidence: 99%

Sources of output growth in the countries of the Common Monetary Area and provinces of South Africa

Sahoo¹,

Sahoo²,

Behera³

et al. 2021

WIDER Working Paper

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This paper aims to decompose the sources of growth in economies in the Southern African region’s Common Monetary Area and in the provinces of South Africa. Decomposition results for the Common Monetary Area reveal that the growth of aggregate and sectoral gross domestic product is driven by input, without increasing efficiency in production or benefiting from technological progress, which is unsustainable. Negative technical change implies that countries are unable to reap the benefits from shifts in technology. Countries experiencing input-driven growth in the secondary sector, such as Namibia and Eswatini, have the potential to achieve growth through efficiency improvements and by adopting technology. Output growth in the provinces of South Africa is negatively contributed by changes in technical efficiency, which suggests that policy makers should raise growth further by emphasizing improvements in efficiency in these provinces.

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“…This study proposes that credit should be made available to farmers in Egypt, Morocco, Algeria and Tunisia. Furthermore, agricultural development programs should be implemented in South Africa and Senegal to improve the productivity in these countries (Mohamed et al , 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Productivity growth of Indonesian rice production: sources and efforts to improve performance

Mariyono

2018

IJPPM

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Purpose The purpose of this paper is to investigate the productivity of rice production by decomposing the growth of total factor productivity (TFP) into four components: technological change, scale effects, technical and allocative efficiencies. Design/methodology/approach This study employed an econometric approach to decompose TFP growth into four components: technological change, technical efficiency, allocative efficiency and scale effect. Unbalanced panel data used in this study were surveyed in 1994, 2004 and 2014 from 360 rice farming operations. The model used the stochastic frontier transcendental logarithm production technology to estimate the technology parameters. Findings The results indicate that the primary sources of TFP growth were technological change and allocative efficiency effects. The contribution of technical efficiency was low because it grew sluggishly. Research limitations/implications This study has several shortcomings, such as very low R2 and the insignificant elasticity of labour presented in the findings. Another limitation is the limited time period panel covering long interval, which resulted in unbalanced data. Practical implications The government should improve productivity growth by allocating more areas for rice production, which enhances the scale and efficiency effects and adjusting the use of capital and material inputs. Extension services should be strengthened to provide farmers with training on improved agronomic technologies. This action will enhance technical efficiency performance and lead to technological progress. Social implications As Indonesian population is still growing at a significant rate and the fact that rice is the primary staple food for Indonesian people, the productivity of rice production should increase continually to ensure social security at a national level. Originality/value The productivity growth is decomposed into four components using the transcendental logarithm production technology based on farm-level data. The measure has not been conducted previously in Indonesia, even in rice-producing countries.

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Decomposition of agricultural productivity growth in Africa

Cited by 12 publications

References 15 publications

The effectiveness of development aid for agriculture in Sub-Saharan Africa

The effectiveness of development aid for agriculture in Sub-Saharan Africa

Sources of output growth in the countries of the Common Monetary Area and provinces of South Africa

Productivity growth of Indonesian rice production: sources and efforts to improve performance

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