Agricultural Productivity, Poverty Reduction and Inclusive Growth in Africa: Linkages and Pathways

26 Pages Posted: 23 Oct 2016

See all articles by Adeyemi Ogundipe

Adeyemi Ogundipe

Covenant University

Emmanuel Akanji Oduntan

Covenant University

Ogunniyi Adebayo

University of Ibadan, Students

Kehinde Olagunju

Saint Istvan University

Date Written: October 20, 2016

Abstract

Poverty in Africa is primarily rural concentrated, about 75% of the poor population live in rural areas and draws their livelihood and food from agriculture. The Sub-Saharan African region is home to more than quarter of a billion people living in extreme poverty, with the Eastern and Southern Africa having the world’s highest concentrations of poor people. The renewed focus on the poverty reducing potential of agricultural productivity accentuate from the fact that the incidence of poverty in Sub-Saharan Africa is increasing faster than the population. The study examined the effect of agricultural productivity on poverty reduction in Africa using the dynamic panel data approach estimated using the System-GMM technique for the period 1991-2015. The conceptual framework of the study identified three main linkages via which agricultural productivity translates to poverty reduction; this include: i. income empowerment, ii. Market expansion, and iii. Sustenance enhancement. The empirical result suggests that agricultural value added per worker contributes significantly to reducing rural poverty in Africa. On the other hand, food production index and GDP per capita were more important factors in curbing urban and dollar poverty implying that non-farm poor tends to have a large food marginal propensity to consume (MPC). The insignificance of GDP per capita in dwindling rural poverty reflects that the reality that growth in other sector does not influence the livelihood of the rural poor farmers due to its subsistence nature. Finally, domestic credit to private sectors and institutions were significant in reducing all categories of poverty, with largest impact on rural poverty. It implies that development programmes targeted at enhancing agricultural productivity should encompass strategies for accessing credit in order to boost the asset base of rural farmer for a large scale commercial production. Also, appropriate macroeconomic policies and institutional quality needs to be enhanced to boost provision of social services, equitable land and credit access.

Keywords: Agricultural Productivity, Poverty, Inclusiveness, Africa

JEL Classification: 013, I32, N17

Suggested Citation

Ogundipe, Adeyemi and Oduntan, Emmanuel Akanji and Adebayo, Ogunniyi and Olagunju, Kehinde, Agricultural Productivity, Poverty Reduction and Inclusive Growth in Africa: Linkages and Pathways (October 20, 2016). Available at SSRN: https://ssrn.com/abstract=2856449 or http://dx.doi.org/10.2139/ssrn.2856449

Adeyemi Ogundipe (Contact Author)

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria
+2348161927372 (Phone)

Emmanuel Akanji Oduntan

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Ogunniyi Adebayo

University of Ibadan, Students ( email )

Ibadan
Nigeria

Kehinde Olagunju

Saint Istvan University ( email )

Páter K. srt.
Gödöllő, 12100
Hungary

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