What is Missing Between Agricultural Growth and Infrastructure Development? Cases of Coffee and Dairy in Africa

Abstract

Although it is commonly believed that aggregate economic growth must be associated with public infrastructure stocks, the possible infrastructure needs and effects are different from industry to industry. The agriculture sector is typical. Various infrastructures would affect agriculture growth differently depending on the type of commodity. This paper finds that a general transport network is essential to promote coffee and cocoa production, perhaps along with irrigation facilities, depending on local rainfall. Conversely, along with the transport network, the dairy industry necessitates rural water supply services as well. In some African countries, a 1 percent improvement in these key aspects of infrastructure could raise GDP by about 0.1-0.4 percent, and by possibly by several percent in some cases.

Keywords: Transport Economics Policy & Planning, Economic Theory & Research, Crops & Crop Management Systems, Food & Beverage Industry, Rural Development Knowledge & Information Systems