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Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan

Received: 10 March 2019     Accepted: 29 April 2019     Published: 24 December 2019
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Abstract

Agricultural sector contribute about 36% of the East African Community’s Gross Domestic Product (World Bank, 2009), 80 per cent of the populace depend on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC (East African Countries) suffer from hunger and the agricultural sector still retains a lot of untapped potential, specifically for commercial farming. However, economic growth target for agriculture sector can be achieved by stimulating three factors; capital, labor and total productivity of capital and labor through R&D. This study applied panel random effect model on EAC countries data, 2000-2014. Random effects regression results showed that all explanatory variables had a significant and positive relationship with the dependent variable. From the findings the study recommends: R&D to be allocated more funds; more research scientists and agricultural labourers to be employed; R&D based knowledge to be disseminated to the public through publications; firms to train agricultural labourers on how new technologies are being used and also to allocate them duties and responsibilities that match their skills and that agricultural capital costs be subsidised.

Published in International Journal of Environmental Chemistry (Volume 3, Issue 2)
DOI 10.11648/j.ijec.20190302.12
Page(s) 59-64
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Agricultural Sector Growth, Labour, Capital, Research and Development, EAC, Economic Growth

References
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[5] FAO. (2006), Prospect for Food, Nutrition, Agriculture and Major Commodity Groups, Being an Interim Report on World Agriculture Towards 2030/2050. Rome: FAO.
[6] Gutierrez, L., & Gutierrez, M. (2005). International R&D Spillovers and Productivity Growth in the Agricultural Sector: A Panel Cointegration Approach. Department of Agricultural Economics: University of Sassasi, Italy.
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[8] Kim, L. (2009). The Economic Growth Effect of R&D Activity in Korea. Korea and the World Economy, Vol. 1, No. 12, 25-44.
[9] Khaledi, K., & Shirazi, A. (2015). Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Fifth Development Plan of Iran (Emphasis on Investment). World Applied Sciences Journal, 22 (10): 1492-1499.
[10] Levin, A., Lin, C., & Chu, C. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108, 1-24.
[11] Matahir, H. (2012), the empirical investigation of the nexus between agricultural and industrial sectors in Malaysia. International Journal of Business and Social Science, 3 (8), 225-230.
[12] Ntibagirirwa, S. (2014). Philosophical Premises for African Economic Development Sen’s Capability Approach. Globethics net Theses, 7, Geneva.
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[16] Romer, P. (1986). Increasing Returns and Long Run Growth. Journal of Political Economy, No. 94: 102-37.
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  • APA Style

    Naftaly Gisore Mose. (2019). Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan. International Journal of Environmental Chemistry, 3(2), 59-64. https://doi.org/10.11648/j.ijec.20190302.12

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    ACS Style

    Naftaly Gisore Mose. Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan. Int. J. Environ. Chem. 2019, 3(2), 59-64. doi: 10.11648/j.ijec.20190302.12

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    AMA Style

    Naftaly Gisore Mose. Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan. Int J Environ Chem. 2019;3(2):59-64. doi: 10.11648/j.ijec.20190302.12

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  • @article{10.11648/j.ijec.20190302.12,
      author = {Naftaly Gisore Mose},
      title = {Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan},
      journal = {International Journal of Environmental Chemistry},
      volume = {3},
      number = {2},
      pages = {59-64},
      doi = {10.11648/j.ijec.20190302.12},
      url = {https://doi.org/10.11648/j.ijec.20190302.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijec.20190302.12},
      abstract = {Agricultural sector contribute about 36% of the East African Community’s Gross Domestic Product (World Bank, 2009), 80 per cent of the populace depend on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC (East African Countries) suffer from hunger and the agricultural sector still retains a lot of untapped potential, specifically for commercial farming. However, economic growth target for agriculture sector can be achieved by stimulating three factors; capital, labor and total productivity of capital and labor through R&D. This study applied panel random effect model on EAC countries data, 2000-2014. Random effects regression results showed that all explanatory variables had a significant and positive relationship with the dependent variable. From the findings the study recommends: R&D to be allocated more funds; more research scientists and agricultural labourers to be employed; R&D based knowledge to be disseminated to the public through publications; firms to train agricultural labourers on how new technologies are being used and also to allocate them duties and responsibilities that match their skills and that agricultural capital costs be subsidised.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Estimates of Factors Affecting Economic Growth in the Agricultural Sector in the Development Plan
    AU  - Naftaly Gisore Mose
    Y1  - 2019/12/24
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijec.20190302.12
    DO  - 10.11648/j.ijec.20190302.12
    T2  - International Journal of Environmental Chemistry
    JF  - International Journal of Environmental Chemistry
    JO  - International Journal of Environmental Chemistry
    SP  - 59
    EP  - 64
    PB  - Science Publishing Group
    SN  - 2640-1460
    UR  - https://doi.org/10.11648/j.ijec.20190302.12
    AB  - Agricultural sector contribute about 36% of the East African Community’s Gross Domestic Product (World Bank, 2009), 80 per cent of the populace depend on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC (East African Countries) suffer from hunger and the agricultural sector still retains a lot of untapped potential, specifically for commercial farming. However, economic growth target for agriculture sector can be achieved by stimulating three factors; capital, labor and total productivity of capital and labor through R&D. This study applied panel random effect model on EAC countries data, 2000-2014. Random effects regression results showed that all explanatory variables had a significant and positive relationship with the dependent variable. From the findings the study recommends: R&D to be allocated more funds; more research scientists and agricultural labourers to be employed; R&D based knowledge to be disseminated to the public through publications; firms to train agricultural labourers on how new technologies are being used and also to allocate them duties and responsibilities that match their skills and that agricultural capital costs be subsidised.
    VL  - 3
    IS  - 2
    ER  - 

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Author Information
  • School of Economics, University of Eldoret, Eldoret, Kenya

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