Analyzing the influence of agricultural raw material imports on agricultural growth in 48 Sub-Saharan African countries

Abstract

This study examines the impact of agricultural raw material imports (ARMI) on economic growth in 48 Sub-Saharan African countries from 1990 to 2023. Given the critical role of agriculture in the region, the research seeks to understand how access to imported agricultural inputs influences productivity and overall economic development. A gravity model framework is employed to analyze the relationship between ARMI and gross domestic product (GDP). The study incorporates panel data spanning over three decades, controlling for key economic indicators such as gross fixed capital formation and rural population. The results indicate a statistically significant positive correlation between ARMI and GDP, suggesting that imported agricultural inputs play a vital role in enhancing productivity and driving economic growth. Additionally, gross fixed capital formation and rural population are identified as significant determinants of economic performance in the region. The study underscores the importance of facilitating agricultural imports to support sustainable economic development. It highlights the need for a strategic approach to optimize the benefits of ARMI and strengthen the agricultural sector's contribution to GDP growth. Policymakers should implement supportive policies and structural reforms to enhance the effective utilization of agricultural imports. This includes improving trade facilitation, infrastructure, and investment in agricultural value chains to ensure long-term economic prosperity in Sub-Saharan Africa.