Does agricultural development improve the structure of exports in sub-Saharan Africa?

Abstract:
Purpose
While structuralist theory on international trade advocates refocusing development efforts on the industrial sector for optimal structural change in the economy, sub-Saharan African countries seem to be relying more on the agricultural sector for their development. This raises the question of the relevance of such a development strategy. This article examines how agricultural development affects the structural dynamics of exports from sub-Saharan African countries.

Design/methodology/approach
Based on panel data from 44 sub-Saharan African countries over the period 1995–2014, this study examines the effects of agricultural development on the structural dynamics of these countries' exports. To do so, three indicators of agricultural development (agricultural value added, agricultural employment and agricultural productivity) and two structural indicators of exports (diversification and export quality) are used. The Panel-Corrected Standard Errors (PCSE) estimator and the System Generalized Moment Method (Sys-GMM) were used to estimate our dynamic panel regression models.

Findings
The results show that each of the three agricultural development indicators has a significant influence on the diversification and quality of exports of the sample countries but that only the improvement of agricultural productivity has a positive effect.

Practical implications
In order to improve the export structure of sub-Saharan African countries, this document recommends that governments focus agricultural development on improving labour productivity, among other things, through training in modern agricultural techniques that incorporate cutting-edge technology. We also recommend that they strengthen the synergy between the three sectors of the economy by promoting the final and intermediate consumption of locally produced goods.

Originality/value
Unlike other studies, our article assesses the transformative power of agricultural development in sub-Saharan Africa by taking into account the quality of exports and agricultural productivity.