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Drivers of agricultural productivity: Evidence from transforming economies

Drivers of agricultural productivity: Evidence from transforming economies AbstractThis study empirically investigates the drivers of agricultural productivity in transforming economy. The study used a 35-year period (1980–2014) panel data sourced from World Development Indicators, Penn World Table, United States Department of Agriculture and Statistics on Public Expenditure for Economic Development. Data used for the study include Agricultural Productivity (AP), Real Gross Domestic Product (GDP), Government Agricultural Expenditure (EXP), Agricultural Trade Barrier (ATB), Consumer Price Index (CPI), Farm Machinery (MACH), Fertiliser (FERT), Human Capital (HCAP) and Irrigation (IRRG). Data were analysed using Impulse Response Function, Levin-Lin-Chu unit root test, Johansen-Fisher Panel Cointegration test and Panel Least Squares regression technique. Impulse Response Function revealed that ln (GDP)reacted negatively to a shock from ln (Agricultural Productivity). Levin-Lin-Chu unit root test revealed that the variables were stationary either at level or at first difference. The result of the Johansen-Fisher panel cointegration test showed that for every case at 5 percent level of significance, we reject null hypothesis of no cointegration. Panel Least Squares revealed that Agricultural Trade Barrier (α = 0.0531, p < 0.05), Human Capital (α = 1.2409, p < 0.01) and Irrigation (α = 0.0771, p < 0.01) increased Agricultural Productivity. However, Fertilizer (α = −0.0730, p < 0.01) decreased Agricultural Productivity. This study therefore concluded that Agricultural Productivity will grow in transforming economy with trade restriction on imported agricultural tradable commodities, increased investment in human capital and expansion in irrigation application. The study therefore recommends measures that will protect domestic agriculture, capacity building of the farmers and improved irrigation infrastructure that will enhance small scale farmers for all-season cropping. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Agricultura Tropica et Subtropica de Gruyter

Drivers of agricultural productivity: Evidence from transforming economies

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Publisher
de Gruyter
Copyright
© 2021 Olatokunbo Hammed Osinowo et al., published by Sciendo
ISSN
1801-0571
eISSN
1801-0571
DOI
10.2478/ats-2021-0002
Publisher site
See Article on Publisher Site

Abstract

AbstractThis study empirically investigates the drivers of agricultural productivity in transforming economy. The study used a 35-year period (1980–2014) panel data sourced from World Development Indicators, Penn World Table, United States Department of Agriculture and Statistics on Public Expenditure for Economic Development. Data used for the study include Agricultural Productivity (AP), Real Gross Domestic Product (GDP), Government Agricultural Expenditure (EXP), Agricultural Trade Barrier (ATB), Consumer Price Index (CPI), Farm Machinery (MACH), Fertiliser (FERT), Human Capital (HCAP) and Irrigation (IRRG). Data were analysed using Impulse Response Function, Levin-Lin-Chu unit root test, Johansen-Fisher Panel Cointegration test and Panel Least Squares regression technique. Impulse Response Function revealed that ln (GDP)reacted negatively to a shock from ln (Agricultural Productivity). Levin-Lin-Chu unit root test revealed that the variables were stationary either at level or at first difference. The result of the Johansen-Fisher panel cointegration test showed that for every case at 5 percent level of significance, we reject null hypothesis of no cointegration. Panel Least Squares revealed that Agricultural Trade Barrier (α = 0.0531, p < 0.05), Human Capital (α = 1.2409, p < 0.01) and Irrigation (α = 0.0771, p < 0.01) increased Agricultural Productivity. However, Fertilizer (α = −0.0730, p < 0.01) decreased Agricultural Productivity. This study therefore concluded that Agricultural Productivity will grow in transforming economy with trade restriction on imported agricultural tradable commodities, increased investment in human capital and expansion in irrigation application. The study therefore recommends measures that will protect domestic agriculture, capacity building of the farmers and improved irrigation infrastructure that will enhance small scale farmers for all-season cropping.

Journal

Agricultura Tropica et Subtropicade Gruyter

Published: Jan 1, 2021

Keywords: Agricultural growth determinants; developing countries; food security; impulse response function; panel least square; total factor productivity

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