Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa

This paper analyzes the determinants of the composition of government agriculture expenditure (GAE) in Africa and estimates the effect of the composition on agricultural productivity using cross-country annual data from 2014 to 2020 and structural equations modeling methods. It includes different sp...

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Autor principal: Benin, Samuel
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/148782
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author Benin, Samuel
author_browse Benin, Samuel
author_facet Benin, Samuel
author_sort Benin, Samuel
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper analyzes the determinants of the composition of government agriculture expenditure (GAE) in Africa and estimates the effect of the composition on agricultural productivity using cross-country annual data from 2014 to 2020 and structural equations modeling methods. It includes different specifications of the explanatory variables to assess the sensitivity of the results to different assumptions of the conceptual variables that are hypothesized to affect the composition and pathways of impact of government expenditure. The results show that there is a wide variation in GAE across African countries, and few have achieved the 10 percent CAADP agriculture expenditure target. Most African countries spend much smaller proportions of the national budget on agriculture than the sector’s share in the economy, and total agriculture expenditure seems to be allocated across subsectors according to their relative contribution to the sector’s output, with forestry and fisheries being slightly favored compared with crops and livestock, which dominate the sector. The allocation is also affected by several factors, such as past output and size of the subsector, official development assistance, education, irrigation, and state of agricultural transformation, although there are cross-subsector differences in their influence. There are also subsector differences in the estimated effect of GAE on land productivity: 0.06 to 0.08 for expenditure on the total sector, 0.02 for research, 0 to 0.09 for crops, 0 to 0.08 for livestock, and 0 to 0.07 for fisheries. The lower bound of zero means that the estimated effect is not statistically significant in some of the model specifications, such as whether cross-subsector expenditure effects are considered. We discuss implications of the results and suggestions for future research.
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spelling CGSpace1487822025-12-02T21:02:40Z Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa Benin, Samuel agricultural productivity agriculture CAADP data expenditure This paper analyzes the determinants of the composition of government agriculture expenditure (GAE) in Africa and estimates the effect of the composition on agricultural productivity using cross-country annual data from 2014 to 2020 and structural equations modeling methods. It includes different specifications of the explanatory variables to assess the sensitivity of the results to different assumptions of the conceptual variables that are hypothesized to affect the composition and pathways of impact of government expenditure. The results show that there is a wide variation in GAE across African countries, and few have achieved the 10 percent CAADP agriculture expenditure target. Most African countries spend much smaller proportions of the national budget on agriculture than the sector’s share in the economy, and total agriculture expenditure seems to be allocated across subsectors according to their relative contribution to the sector’s output, with forestry and fisheries being slightly favored compared with crops and livestock, which dominate the sector. The allocation is also affected by several factors, such as past output and size of the subsector, official development assistance, education, irrigation, and state of agricultural transformation, although there are cross-subsector differences in their influence. There are also subsector differences in the estimated effect of GAE on land productivity: 0.06 to 0.08 for expenditure on the total sector, 0.02 for research, 0 to 0.09 for crops, 0 to 0.08 for livestock, and 0 to 0.07 for fisheries. The lower bound of zero means that the estimated effect is not statistically significant in some of the model specifications, such as whether cross-subsector expenditure effects are considered. We discuss implications of the results and suggestions for future research. 2024-06-28 2024-06-28T19:39:56Z 2024-06-28T19:39:56Z Working Paper https://hdl.handle.net/10568/148782 en https://hdl.handle.net/10568/128251 https://hdl.handle.net/10568/143440 https://hdl.handle.net/10568/150109 https://hdl.handle.net/10568/147099 https://hdl.handle.net/10568/143510 Open Access application/pdf International Food Policy Research Institute Benin, Samuel. 2024. Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa. Discussion Paper 2260. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/148782
spellingShingle agricultural productivity
agriculture
CAADP
data
expenditure
Benin, Samuel
Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title_full Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title_fullStr Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title_full_unstemmed Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title_short Two decades after Maputo, What’s in the CAADP ten percent? Determinants and effects of the composition of government agriculture expenditure in Africa
title_sort two decades after maputo what s in the caadp ten percent determinants and effects of the composition of government agriculture expenditure in africa
topic agricultural productivity
agriculture
CAADP
data
expenditure
url https://hdl.handle.net/10568/148782
work_keys_str_mv AT beninsamuel twodecadesaftermaputowhatsinthecaadptenpercentdeterminantsandeffectsofthecompositionofgovernmentagricultureexpenditureinafrica