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Agro-processing Output and Agricultural Sector Employment: Evidence from South Africa

Megbowon Ebenezer Toyin (), Ojo Oloruntimilehin Sola () and Olasehinde Timilehin John ()
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Megbowon Ebenezer Toyin: University of Fort Hare
Ojo Oloruntimilehin Sola: Federal Polytechnic
Olasehinde Timilehin John: Ekiti State University

Acta Universitatis Danubius. OEconomica, 2017, issue 13(2), 174-184

Abstract: This paper empirically examined the relationship between agro-processing sub-sector output and agricultural sector employment in South Africa by using time series data from 1975-2015. The study employed ARDL-bounds testing approach to examine the existence long-run equilibrium relationship. The result of the ARDL test confirmed the existence of long-run relationship among the variables examined. The long-run estimate result revealed that the relationship between agro-processing output and agricultural sector employment is negative in the long-run. The study further examined the causality between agro-processing output and agricultural sector employment using TYDL causality test and it observed a unidirectional causal relationship running from agro-processing output to agricultural sector employment. While it is deduced that agro-processing sector output is found to be unable to promote agricultural sector employment, this study recommends stimulation of agricultural export for agricultural sector employment generation in South Africa.

Keywords: Agro-processing; Agricultural Sector Employment; ARDL-Bound Testing; TYDL; South Africa (search for similar items in EconPapers)
Date: 2017
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