Macroeconomic Variables, Finance and Agricultural Output in Sub-Sahara Africa Countries
DOI:
https://doi.org/10.51137/wrp.ijarbm.351Keywords:
Macroeconomic Variables, Finance, Agricultural OutputAbstract
The study examined macroeconomic variables, finance and agricultural output in Sub-Sahara Africa (SSA) countries. The data for the study were sourced from the World Development Indicator database and covers 1990 to 2023. The study employed GMM panel data estimator, autoregressive distributed lag model and Dumitrescu and Hurlin Panel Causality Tests to achieve the specified objectives of the study. Macroeconomic variables were revealed to be significantly related to agricultural output in SSA countries with coefficient value of 0.188 and at 5%. Bank credit shows a significant impact on agricultural output in SSA countries. The study also revealed that there exists a unidirectional causality between macroeconomic variables on agricultural output in Sub-Sahara African countries at 5% significant level. The study concluded that macroeconomic variables (such as foreign direct investment, interest rate, exchange rate and banking credit) have significant impact agricultural output in SSA. Therefore, the study recommends that Government of SSA should operate a single exchange rate rather than operating dual exchange rate which will encourage SSA economy to openness of trade so as to improve the performance of agricultural sector in Sub-Sahara Africa.
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