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Impact of Agricultural Productivity on Economic Growth and Poverty Alleviation in ECOWAS Countries: An Empirical Analysis Mouayadi Said Ali Madi, Jiong Gong, & Kokou Wotodjo Tozo

Impact of Agricultural Productivity on Economic Growth and Poverty Alleviation in ECOWAS Countries: An Empirical Analysis

Author (s)

Mouayadi Said Ali Madi, Jiong Gong, & Kokou Wotodjo Tozo

Abstract

Many African countries are still being faced with basic welfare issues such as hunger and extreme poverty, sparking debates among researchers and policy makers on whether the continent can endogenously leverage its agricultural potentials to address these challenges. To contribute to these debates, this study employs a panel data spanning 26 year (1990-2015) and including 13 ECOWAS countries to analyze the impact of production factors on agricultural productivity and examine the question of whether and how agriculture can serve as a tool for growth and poverty alleviation in the region. By linearizing the Cobb-Douglas production function and using fixed effects (FE) with country dummies, we find positive and significant relationship between lands cultivated, physical and financial capitals, as opposed to labor employed on agricultural productivity. Next, by using 2SLS/IV and GMM/IV methods, we show that agricultural productivity can be a pro-growth and counter-poverty tool. Furthermore we find that non-agricultural productivity interacts significantly with agricultural productivity and that agricultural productivity gap (APG) decreases both growth and poverty index. Following these results, we chart the transmission mechanisms for policy makers that will allow them to understand the linkages and pathways through which agricultural productivity affects the entire economy.

Key words: Agricultural productivity, agricultural productivity gap (APG), production factors, economic growth, poverty reduction, ECOWAS, SSA, Africa.

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Title: Impact of Agricultural Productivity on Economic Growth and Poverty Alleviation in ECOWAS Countries: An Empirical Analysis
Author:

Mouayadi Said Ali Madi, Jiong Gong, & Kokou Wotodjo Tozo

Journal Name: Journal of Scientific Reports
Website: https://ijsab.com/jsr
Publisher IJSAB-International
DOI: https://doi.org/10.5281/zenodo.3935367
Media: Online
Volume: 2
Issue: 1
Acceptance Date: 07/07/2020
Date of Publication: 08/07/2020
PDF URL: https://ijsab.com/wp-content/uploads/1013.pdf
Free download: Available
Page: 97-125
First Page: 97
Last Page: 125
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Mouayadi Said Ali Madi, Jiong Gong, & Kokou Wotodjo Tozo (2020). Impact of Agricultural Productivity on Economic Growth and Poverty Alleviation in ECOWAS Countries: An Empirical Analysis. Journal of Scientific Reports, 2(1), 97-125. doi: https://doi.org/10.5281/zenodo.3935367

Retrieved from https://ijsab.com/wp-content/uploads/1013.pdf

 

About Author (s)

Mouayadi Said Ali Madi, PhD, Industrial Economics, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing-China.

Jiong Gong, Professor of Economics, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing-China.

Kokou Wotodjo Tozo (Corresponding Author), PhD, International Economics, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing-China.

 

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DOI: https://doi.org/10.5281/zenodo.3935367

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The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries Afolabi Tunde Ahmed & Imran Ur Rahman

The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries

Author (s)

Afolabi Tunde Ahmed & Imran Ur Rahman

Abstract

Many are the presumptions of the effect of Foreign aid on growth on one side and the effect of Foreign Direct investment (FDI) on the other side. Our research empirically examines the impact of FDI and Foreign Aid on economic growth of Sub-Saharan African countries. To do so, we answer three questions: What drives the economic growth in Sub-Saharan Africa? What are the impacts of FDI and Foreign Aid on economic growth? and which relationship does exist in one part between FDI and economic growth and the other part between Foreign Aid and economic growth? To tackle our objectives we formulated four hypotheses with Gravity model and Two Stages Generalized Method of Moment analysis. Our findings lead us to conclude: Firstly, three fundamental factors responsible for the economic growth: the country fundamentals (the population, the capital formation), the governance implication (governance effectiveness, Regulatory Quality), and the macro stabilities (Foreign Direct Investment, Foreign Aid, Trade) are responsible and the key factors for the growth in SSA. Secondly, FDI and Aid have a positive and highly significant effect on the GDP. Thirdly, FDI and Aid have short run relationship with the economic growth. And fourthly, our result fall in line with others which have found that domestic factors are vital in promoting the growth effects of FDI. Nevertheless, the findings of this study diverge from others in the literature studies. Even though other researches in the literature works hypothesize that FDI has no absolute positive effect on growth, this study finds that FDI plays a direct role in promoting growth.

Keywords: FDI, Foreign Aid, Economic Growth, Sub-Saharan Africa, Governance Effectiveness, Regulatory Quality.

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Title: The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries
Author:

Afolabi Tunde Ahmed & Imran Ur Rahman

Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3870562
Media: Online
Volume: 4
Issue: 6
Acceptance Date: 17/05/2020
Date of Publication: 31/05/2020
PDF URL: https://ijsab.com/wp-content/uploads/554.pdf
Free download: Available
Page: 53-70
First Page: 53
Last Page: 70
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Afolabi Tunde Ahmed & Imran Ur Rahman (2020). The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries. International Journal of Science and Business, 4(6), 53-70. doi: https://doi.org/10.5281/zenodo.3870562

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About Author (s)

Tunde Ahmed Afolabi, Ph.D. School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China, sirdanielastro12@yahoo.com

Imran Ur Rahman, (Corresponding Author) Associate Professor, Ph.D., Center for Trans-Himalaya Studies, Leshan Normal University, Sichuan China, 2388018157@qq.com

 

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DOI: https://doi.org/10.5281/zenodo.3870562