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Impacts of literacy rate and human development indices on agricultural production in South Africa

Author

Listed:
  • Selebogo LESHORO

    (SouthAfrican Department of Agriculture, Forestry and Fisheries (DAFF), Pretoria, South Africa)

  • Temitope L.A. LESHORO

    (Department of Economics, University of South Africa (UNISA), Pretoria, South Africa)

Abstract

Agriculture is an important sector in South Africa, and the impact that education and human development would have made in this sector via non-white small scale farming was limited through biased policies of the apartheid era. Due to apartheid laws, South Africa found itself with high levels of unskilled labour force. This study seeks to find the impacts of literacy rate and human development indices on agricultural production using Auto Regressive Distributed Lag (ARDL) Bounds Test approach to co-integration. A long run relationship among the variables, agricultural production (agriculture GDP), literacy rate and human development indices were found. Literacy rate has a positively significant effect on agricultural production in the long run while Human Development Index has a positive and significant impact in the short run. This indicates that the apartheid regime fell short in recognizing the positive effect of education in the agricultural sector by denying a descent education to the majority of non-whites which were farm labourers or small scale farmers. This study provides some policy recommendations.

Suggested Citation

  • Selebogo LESHORO & Temitope L.A. LESHORO, 2013. "Impacts of literacy rate and human development indices on agricultural production in South Africa," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(11), pages 531-536.
    • Handle: RePEc:caa:jnlage:v:59:y:2013:i:11:id:35-2013-agricecon
    DOI: 10.17221/35/2013-AGRICECON
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    References listed on IDEAS

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    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Ranis, Gustav, 2004. "Human Development and Economic Growth," Center Discussion Papers 28375, Yale University, Economic Growth Center.
    3. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    4. Phanhpakit ONPHANHDALA, 2009. "Farmer Education and Agricultural Efficiency: Evidence from Lao PDR," GSICS Working Paper Series 20, Graduate School of International Cooperation Studies, Kobe University.
    5. Gustav Ranis, 2004. "Human Development and Economic Growth," Working Papers 887, Economic Growth Center, Yale University.
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