Not a long ago, the agriculture sector was the main pillar of any economy in the world. It not only provides food production, but it participates to the expansion of the economic growth as well. In this paper, we shall try to investigate the relationship between agriculture sector and economic growth for 30 African countries over the period of 1980-2017 with individual and temporal fixed-effect panel model and panel cointegration. We found with Pedroni and Westerlund tests that we have not a cointegration relationship between variables; hence we cannot estimate the long-run panel model. Therefore, we only estimated the panel model with individual and temporal fixed-effect, then we established that the two variables of economic openness relied to agriculture sector are positive, but insignificant, while the variable of the agriculture value-added was positive and statically accepted at the level of 1%, and the coefficient of the labour force in the agriculture sector appears negative and insignificant. The panel Granger causality showed that there is bidirectional causality between agricultural raw materials exports and imports, and the causality of Dumitrescu and Hurlin established that there are several causalities

Sari Hassoun, Salaheddine; Sahed, Abdelkader; Adda, Khayereddine Salim; Sebbane, Asma Hadjira

Not a long ago, the agriculture sector was the main pillar of any economy in the world. It not only provides food production, but it participates to the expansion of the economic growth as well. In this paper, we shall try to investigate the relationship between agriculture sector and economic growth for 30 African countries over the period of 1980-2017 with individual and temporal fixed-effect panel model and panel cointegration. We found with Pedroni and Westerlund tests that we have not a cointegration relationship between variables; hence we cannot estimate the long-run panel model. Therefore, we only estimated the panel model with individual and temporal fixed-effect, then we established that the two variables of economic openness relied to agriculture sector are positive, but insignificant, while the variable of the agriculture value-added was positive and statically accepted at the level of 1%, and the coefficient of the labour force in the agriculture sector appears negative and insignificant. The panel Granger causality showed that there is bidirectional causality between agricultural raw materials exports and imports, and the causality of Dumitrescu and Hurlin established that there are several causalities

Salaheddine Sari Hassoun (), Abdelkader Sahed, Khayereddine Salim Adda and Asma Hadjira Sebbane
Additional contact information
Abdelkader Sahed: Center University of Maghnia, LEPPESE Laboratory, Tlemcen, Algeria
Khayereddine Salim Adda: Abou Bekr Belkaid University, POLDEVA Laboratory, Tlemcen, Algeria
Asma Hadjira Sebbane: Abou Bekr Belkaid University, MIFMA Laboratory, Tlemcen, Algeria

Theoretical and Applied Economics, 2020, vol. XXVII, issue 2(623), Summer, 301-324

Keywords: agriculture; economic growth; African countries; individual and temporal fixed-effect panel model; panel cointegration; panel Granger causality; Dumitrescu and Hurlin causality. (search for similar items in EconPapers)
Date: 2020
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