Determinants of Agricultural Export in Sub-Saharan Africa: Evidence From Panel Study
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Date
2011-06
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Addis Ababa University
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 20002008.
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.
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Keywords
Applied Trade Policy Analysis, Trade Policy Analysis