Macroeconomic Policy Reforms and Productivity Growth in African Agriculture

Ojede, Andrew; Mugera, Amin; Seo, Daigyo

doi:10.1111/coep.12000

Cited by 10 publications

(8 citation statements)

References 52 publications

(78 reference statements)

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“…is significantly positive in the long run and short run results. This outcome further supports Ojede, Amin, and Daigyo (2013) and Eyo (2008) who posited that macro-economic variables (income) can improve agricultural productivity. This is more so given the fact that increase in income can provide ready market for agricultural products and by so doing, it may engender higher productivity in that sector.…”

Section: Domestic Income (Dgdp)supporting

confidence: 83%

Market size, agricultural reforms and agricultural productivity in Nigeria

Ubi¹,

Udah²

2019

Afr. Res. Rev.

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This paper examined market size, agricultural reforms and agricultural productivity nexus in Nigeria with a view to finding out if market size and agricultural reforms can boost agricultural productivity in Nigeria. The study used time series variables that were estimated based on Autoregressive Distributed Bounds Testing approach (ARDL). The results indicated that market size has the capacity to drive agricultural productivity in Nigeria. In the light of this, reforms aimed at adequately financing agricultural sector by government should be pursued. Government should also continue to evolve reforms towards mobilising the private sector to invest in agriculture.

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Section: Domestic Income (Dgdp)supporting

confidence: 83%

Market size, agricultural reforms and agricultural productivity in Nigeria

Ubi¹,

Udah²

2019

Afr. Res. Rev.

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“…Our results seem to suggest that relatively high government controls in terms of ownership of key parastatals that were common in the 1980s and the early 1990s implied extremely low economic freedom index and significantly affected capital inflows. Many developing economies adopted free market reforms during the same time period when the IMF turned SAP policy reforms as preconditions for receiving financial aid (Ojede, Mugera, and Seo ). After many countries attained some threshold values of market reforms and stability in the mid‐1990s, MNEs now view current or recent levels of economic freedom as playing a relatively unimportant role in their decisions to invest in developing countries.…”

Section: Econometric Resultsmentioning

confidence: 99%

“…However, the size of IMF intervention is also a signal that a country has accepted to implement several economic policy reforms that have been recommended by the IMF. Ojede, Mugera, and Seo () employ the same instrument to investigate the impact of macroeconomic policy reforms on productivity growth in African agriculture. They find that the extent of an IMF intervention (measured by size of IMF credit as a share of the economy) is positively correlated with productivity growth in Sub‐Saharan Africa.…”

Section: Econometric Model and Datamentioning

confidence: 99%

External Macroeconomic Imbalances and Foreign Direct Investment Inflows to Developing Countries

Ojede

Kishan

2017

Contemporary Economic Policy

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We employ relative size of International Monetary Fund (IMF) credit as a proxy for interdependent macro variables that are associated with external macroeconomic imbalances or balance of payment (BOP) crisis to investigate how they impact foreign direct investment (FDI) inflows. Relative size of IMF credit as a share of gross domestic product sends two mixed signals to multinational enterprises (MNEs). First, it is a signal that a country is facing an actual or potential BOP crisis. Second, countries that seek IMF credit typically agree to implement a set of “IMF conditionality” before financial credit is disbursed. This may signal to MNEs that policy reforms that must accompany IMF financial credit may result in ex ante positive economic outlook and stability. We find that relative size of IMF credit is negatively (positively) correlated with FDI inflows to developing countries below (above) a threshold value of economic freedom. The main implication of these findings is that MNEs may view developing countries with below average index of economic freedom as lacking institutional capabilities to implement recommended IMF policy reforms when faced with an actual or potential BOP crisis. Our results are robust across alternative model specifications and consistent with the theory of catalytic finance. (JEL F21, F23, F33)

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“…Thus, in this regard, foreign direct investments (FDIs) come to fix the local/domestic investment gap in the agricultural sector. As noted by Ojede et al (2013), FDIs could close the gap between domestic savings and the needed investments. FDIs in the agricultural sector manifest in many forms including investment in innovation (this covers new technologies, best management and production techniques, new seedlings and productivity enhancers like pesticides and fertilizers), lands, and R&D. Through these channels, FDIs directly stimulate local production.…”

Section: Introductionmentioning

confidence: 98%

Does FDI moderate the role of public R&D in accelerating agricultural production in Africa?

Adom

Djahini-Afawoubo

Mustapha

et al. 2018

AJEMS

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Purpose The agriculture sector in Africa is a major employer, but production levels have fallen short of demand. To match future demand, public investment in research and development (R&D) is required. The purpose of this paper is to investigate how foreign direct investments (FDIs) moderate the effects of public R&D on Africa’s agricultural production. Design/methodology/approach This study estimates an unbalanced panel fixed effect model that consists of 28 African countries covering the period 1980–2014. Findings Public R&D increases production in the agriculture sector, however, the effects reverse after ten years. Though FDIs have direct positive effects on production, indirectly, it reduces the productivity potential of public R&D due to the possible dependency syndrome associated with FDIs. Traditional inputs like land, capital, and labour and good political institutions positively drive production, but adverse changes in the weather reduce production. Practical implications There should be a frequent update of R&D and improvement in maintenance culture. FDIs should be seen as complementary efforts, and not as substitute efforts to domestic investment efforts in R&D. Originality/value Insufficient domestic investment has increased the dependence on FDIs. In this regard, FDIs effect on production could be tricky since it increases the volatility in agricultural R&D. This paper contributes to the literature by examining how FDIs moderate the effects of public R&D on output.

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Macroeconomic Policy Reforms and Productivity Growth in African Agriculture

Cited by 10 publications

References 52 publications

Market size, agricultural reforms and agricultural productivity in Nigeria

Market size, agricultural reforms and agricultural productivity in Nigeria

External Macroeconomic Imbalances and Foreign Direct Investment Inflows to Developing Countries

Does FDI moderate the role of public R&D in accelerating agricultural production in Africa?

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