Determinants of Agricultural Export in Sub-Saharan Africa: Evidence from Panel Study

Posted: 20 Jul 2015 Last revised: 24 Feb 2017

See all articles by Eyayu Tesfaye Mulugeta

Eyayu Tesfaye Mulugeta

Addis Ababa University - Department of Economics

Date Written: August 30, 2014

Abstract

Despite the critical importance of agriculture in SSA countries; there are constraints behind, between, and beyond the border that directly and indirectly affects agricultural export performance of these countries. This paper attempts to explain theoretically and assess empirically the demand and the supply side factors affecting agricultural export of SSA countries. Specifically, the study focuses on analyzing the relative importance of the two major factors in determining the countries agricultural export performance. Panel data set with fixed effects estimation technique is used to address the question. The data set covers 47 SSA countries over the periods 2000-2008.The estimation result shows that on the supply side, factors such as real GDP, real GDP (lagged) of exporting country and lagged agricultural input use positively and significantly affects agricultural export of the SSA countries. The study also indicates that on the demand side the effect of per capita GDP of US, the major trading partner of SSA countries, is positive and significant. Moreover, the effect of US import tariff imposed on agricultural products from SSA countries is negative and significant. Therefore, the overall result reiterates that both supply side and demand side factors are equally important in determining agricultural export performance of SSA countries.

Keywords: Agricultural export performance, demand side factors, supply side factors, fixed effects estimation

Suggested Citation

Mulugeta, Eyayu Tesfaye, Determinants of Agricultural Export in Sub-Saharan Africa: Evidence from Panel Study (August 30, 2014). American Journal of Trade and Policy, Vol. 1, No. 2, pp. 62-70, 2014. Available at SSRN: https://ssrn.com/abstract=2632860

Eyayu Tesfaye Mulugeta (Contact Author)

Addis Ababa University - Department of Economics ( email )

Addis Ababa
Ethiopia

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