DETERMINANTS OF AGRIOCULTURAL PRODUCTIVITY AND POVERTY REDUCTION IN SELECTED SUB-SAHARAH AFRICAN COUNTRIES

Abstract

It has been argued that increasing agricultural productivity will not only support the structural transformation process in Sub-Saharan African (SSA) but will also reduce poverty levels and lead to sustained economic development in the sub-region. The study analysed the determinants of agricultural productivity and poverty by assuming a reverse causality relationship. A panel data on 38 selected SSA countries for the period 1981 to 2016 was used. It employed the Fixed Effects- Two (2) Stage Least Square approach to estimate the relationship among agricultural total factor productivity (ATFP), poverty headcount and other macroeconomic variables. The study found a negative significant dual relationship between ATFP and poverty. However, ATFP has a higher coefficient value than poverty headcount, implying that ATFP reduces poverty more than poverty reduction improving ATFP. The study concludes that improvements in agricultural productivity have great potentials in reducing poverty for SSA. Thus, policy initiatives for poverty reduction should start with the agricultural sector by providing irrigational schemes and increase trade among themselves. Moreover, in modernising agriculture, much attention should be given to making it environmentally friendly.