Impact of Agricultural Production on Economic Growth in Zimbabwe

Raynold Runganga and Simbarashe Mhaka

MPRA Paper from University Library of Munich, Germany

Abstract: African countries are expected to be having a comparative advantage when it comes to agricultural products. If this is true, specializing in agriculture can increase output levels. However, the effect of agriculture on growth has yielded various research interests and the results differ from country to country. In this paper, we try to ascertain the impact of agriculture on economic growth in Zimbabwe using the Autoregressive Distributed Lag (ARDL) estimation technique, employing data from 1970 to 2018. In both the short run and long run, the study found that inflation, government expenditure, and gross fixed capital formation have a positive impact on economic growth. The study also found that agricultural production has a positive impact on economic growth in the short run, and no impact on economic growth was found in the long run. Thus, the agricultural sector plays an important role in the early stages of economic development, and when the economy has developed, agriculture plays a minimal role. It is evident from the results of this paper that agriculture is an engine for growth in the short run and should eventually be supported by other macroeconomic policies to promote economic growth in the long run.

Keywords: Agricultural Production; Economic Growth; ARDL. (search for similar items in EconPapers)
JEL-codes: C13 F43 O4 Q1 (search for similar items in EconPapers)
Date: 2021-03-30
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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