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Role of agricultural productivity growth in economic development: the neglected impact on institutional quality in Africa

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  • Richard Grabowski

    (Southern Illinois University)

  • Sharmistha Self

    (University of Northern Iowa)

Abstract

Growing agricultural productivity has often been seen as the key to rapid economic development. In this paper, it is argued that agricultural productivity growth plays an important role in institutional development. It is hypothesized that agricultural productivity growth leads to structural change both inside the rural agricultural sector and between this sector and modern manufacturing and services. This structural change creates opportunities for institutional entrepreneurs to extend institutional protection to these new activities (improving institutional quality). It is also hypothesized that increases in inequality tend to lead to institutional innovation which reduces institutional quality. These hypotheses were tested utilizing data for eighteen countries in Sub-Saharan Africa. The main conclusion is that policies that promote agricultural productivity increases are found to be important in the improvement of institutional quality.

Suggested Citation

  • Richard Grabowski & Sharmistha Self, 2022. "Role of agricultural productivity growth in economic development: the neglected impact on institutional quality in Africa," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 681-700, September.
    • Handle: RePEc:spr:eaiere:v:19:y:2022:i:2:d:10.1007_s40844-022-00232-w
    DOI: 10.1007/s40844-022-00232-w
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    More about this item

    Keywords

    Agricultural productivity; Institutions; Africa;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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