The Impact of Public Spending on Research and Development on Productivity in the Agricultural Sector in Sub-Saharan Africa

Abstract

This study examines public agricultural research and development spending on agricultural production growth in sub-Sahara Africa. The data used for the research were obtained from the United States Development of Agriculture (USDA), World Bank database and Agricultural Science and Technology Indicator (ASTI). The objectives of the study include the following; 1) to assess the impact of public agricultural R&D investment on crop yield growth across Sub-Saharan African countries. 2) to evaluate the effect of public agricultural R&D spending on total factor productivity (TFP) growth in Sub-Saharan Africa. The statistical tools employed for the study were descriptive statistics and panel unit root test using Levin-Lin-Chu, Breitung, and Im-Pesaran-Shin unit root tests. The findings show that the crop yield variable was found to be non-stationary, implying trends or persistent shocks over time. It shows a positive and significant effect of R&D on yield. The differenced values fluctuated around zero, confirming improved stationarity. Similarly, the Total Factor Productivity (TFP) Index was established to be stationary, suggesting short-term fluctuations around a stable mean and making it a suitable dependent variable in evaluating R&D impacts. Hence, TFP and R&D are stationary which shows substantial positive correlation, supporting productivity enhancement via public R&D. The study recommends examining the role of private agricultural R&D and its interaction with public investments in enhancing productivity.