Returns to agricultural public spending in Africa south of the Sahara

Using data on 34 countries in Africa south of the Sahara (SSA) from 1980 to 2012, this paper assesses the returns to public spending in the agricultural sector, considering expenditures on agriculture as a whole versus expenditures on agricultural research. First, an aggregate production function is...

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Main Author: Benin, Samuel
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2015
Subjects:
Online Access:https://hdl.handle.net/10568/150109
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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 Using data on 34 countries in Africa south of the Sahara (SSA) from 1980 to 2012, this paper assesses the returns to public spending in the agricultural sector, considering expenditures on agriculture as a whole versus expenditures on agricultural research. First, an aggregate production function is estimated using a fixed-effects, instrumental variables estimator to address potential endogeneity of agricultural expenditure and to obtain elasticities of land productivity with respect to total agricultural expenditure and agricultural research expenditure. Different model specifications are used to test the sensitivity of the results to different assumptions. The estimated elasticities are then used to estimate the rate of return to expenditure in different countries and groups of countries. The elasticity of land productivity with respect to total agricultural expenditure per hectare is estimated at 0.04, and elasticity with respect to agricultural research expenditure per hectare is estimated to be higher at 0.09. The aggregate returns to total agricultural expenditure and agricultural research expenditure in SSA are estimated at 11 percent and 93 percent, respectively. Comparative analysis of the estimates with those of previous studies, as well as across different countries and different groups of countries, is undertaken. Then implications are discussed for maintaining the high returns to agricultural research expenditure and for further studies on the low return to total agricultural expenditure, including more disaggregated analysis of expenditure on other functions besides research to better inform prioritization of agricultural expenditure.
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spelling CGSpace1501092025-11-06T07:24:34Z Returns to agricultural public spending in Africa south of the Sahara Benin, Samuel agricultural sector investment agricultural growth agricultural research agricultural expenditure public expenditure Using data on 34 countries in Africa south of the Sahara (SSA) from 1980 to 2012, this paper assesses the returns to public spending in the agricultural sector, considering expenditures on agriculture as a whole versus expenditures on agricultural research. First, an aggregate production function is estimated using a fixed-effects, instrumental variables estimator to address potential endogeneity of agricultural expenditure and to obtain elasticities of land productivity with respect to total agricultural expenditure and agricultural research expenditure. Different model specifications are used to test the sensitivity of the results to different assumptions. The estimated elasticities are then used to estimate the rate of return to expenditure in different countries and groups of countries. The elasticity of land productivity with respect to total agricultural expenditure per hectare is estimated at 0.04, and elasticity with respect to agricultural research expenditure per hectare is estimated to be higher at 0.09. The aggregate returns to total agricultural expenditure and agricultural research expenditure in SSA are estimated at 11 percent and 93 percent, respectively. Comparative analysis of the estimates with those of previous studies, as well as across different countries and different groups of countries, is undertaken. Then implications are discussed for maintaining the high returns to agricultural research expenditure and for further studies on the low return to total agricultural expenditure, including more disaggregated analysis of expenditure on other functions besides research to better inform prioritization of agricultural expenditure. 2015-12-18 2024-08-01T02:50:43Z 2024-08-01T02:50:43Z Working Paper https://hdl.handle.net/10568/150109 en https://hdl.handle.net/10568/149541 https://hdl.handle.net/10568/151010 Open Access application/pdf International Food Policy Research Institute Benin, Samuel. 2015. Returns to agricultural public spending in Africa south of the Sahara. IFPRI Discussion Paper 1491. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/150109
spellingShingle agricultural sector
investment
agricultural growth
agricultural research
agricultural expenditure
public expenditure
Benin, Samuel
Returns to agricultural public spending in Africa south of the Sahara
title Returns to agricultural public spending in Africa south of the Sahara
title_full Returns to agricultural public spending in Africa south of the Sahara
title_fullStr Returns to agricultural public spending in Africa south of the Sahara
title_full_unstemmed Returns to agricultural public spending in Africa south of the Sahara
title_short Returns to agricultural public spending in Africa south of the Sahara
title_sort returns to agricultural public spending in africa south of the sahara
topic agricultural sector
investment
agricultural growth
agricultural research
agricultural expenditure
public expenditure
url https://hdl.handle.net/10568/150109
work_keys_str_mv AT beninsamuel returnstoagriculturalpublicspendinginafricasouthofthesahara