Do agricultural exports enhance agricultural (economic) growth? Lessons from ECOWAS countries

Given the urgent need to increase farming income and foreign exchange earnings, a substantial expansion of agricultural production for export is often a rational policy in developing countries, including the Economic Community of West African States (ECOWAS). The study analyzes the effects of agricultural exports on agri-cultural growth and overall economic growth in the ECOWAS region for the period 1996-2018. It also explores the combined effect of agricultural exports and agricultural growth on economic growth. We use the instru-mental variables approach to control the endogeneity issue. Findings indicate that agricultural exports signifi-cantly enhance agricultural growth and overall economic growth. Moreover, the effect differs considerably from the agricultural growth equation to the economic growth equation. We also find that there is no complementarity nor substitutability effect of agricultural exports and agricultural growth on economic growth. These findings have important policy implications in agricultural development policy design and implementation in ECOWAS countries.

Automated summary

This study analyzes the effects of agricultural exports on agricultural and overall economic growth, finding that agricultural exports significantly enhance both agricultural and overall economic growth in the ECOWAS region. The study also explores the relationship between agricultural exports and agricultural growth on economic growth, finding no complementarity or substitutability effect. These findings have important policy implications for agricultural development policy design and implementation in ECOWAS countries.