The Impact of Agricultural Structural Transformation on Economic Growth in Africa

Abstract

This study examines the influence of agricultural structural transformation on economic growth in 36 African countries over a period from 1990 to 2018. The Feasible Generalized Least Squares estimation technique is used to control for spatial dependence across African countries and error autocorrelation. The results revealed that the reallocation of agricultural labor positively contributes to economic growth in Africa. In contrast, agricultural value-added and agricultural employment negatively affect economic growth in Africa. As a policy implication, African countries must strengthen agricultural structural transformation for their economic development in line with the African Union vision.