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MACROECONOMIC POLICY REFORMS AND PRODUCTIVITY GROWTH IN AFRICAN AGRICULTURE

Authors

  • ANDREW OJEDE,

    1. Ojede: Assistant Professor of Macroeconomics, Department of Economics, California State University, Long Beach, 1250 Bellflower Boulevard, Long Beach, CA 90840-4607. Phone (562) 985 5070, Fax (562) 985 5804, E-mail Andrew.Ojede@csulb.edu
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  • AMIN MUGERA,

    1. Mugera: Assistant Professor of Agricultural Economics, Institute of Agriculture and School of Agricultural and Resource Economics, Faculty of Natural and Agricultural Sciences, The University of Western Australia M089, 35 Stirling Highway, Crawley, WA 6009, Australia. Phone +61 08 6488 3427, Fax +81-08-6488-109, E-mail amin.mugera@uwa.edu.au
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  • DAIGYO SEO

    1. Seo: Assistant Professor of Economics, Department of Economics, Konkuk University at Glocal Campus, 322 Danwol-dong, Chungju-si, Chungbuk, Korea. Phone +82 43 840 346, Fax +82 43 840 3440, E-mail dkseo@kku.ac.kr
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    • The earlier draft of this article was presented at the 86th Conference of the Western Economics Association International (WEAI), Contemporary Economic Policy Session in San Diego, California. We would like to acknowledge comments from seminar participants and suggestions from Juliana Wang who was the discussant of this article. We also want to thank Steven Yamarik and Bebonchu Atems for their valuable comments and suggestions. All the errors of course remain our own.


Abstract

This article employs a two-stage procedure to investigate the impact of macroeconomic policy reforms on the agricultural productivity growth of 33 African countries from 1981 to 2001. In the first stage, we measure agricultural productivity using a nonparametric Malmquist productivity index. In the second stage, we build a generalized method of moments (GMM) model with a measure of structural adjustment program (SAP) intensity as a key instrument for macroeconomic policy reforms. We also control for the effects of globalization, civil violence, level of development of physical and financial infrastructure, and other economic variables as well as natural resource factors that directly affect agricultural productivity. Our results indicate a strong positive correlation between the extent of SAP intensity and agricultural productivity, suggesting that the macroeconomic policy reforms improved agricultural productivity growth in the sample countries. (JEL E6, O13, O41)

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