TEST OF THE CATCH-UP HYPOTHESIS IN AFRICAN AGRICULTURAL GROWTH RATES

Abstract

The paper tested the catch-up hypothesis in agricultural growth rates of twenty-six African countries. Panel data used was drawn from the Food and Agricultural Organization Statistics (FAOSTAT) of the United Nations. The Data Envelopment Analysis Method for measuring productivity was used to estimate productivity growth rates. The cross-section framework consisting of sigma-convergence and beta-convergence was employed to test the catching up process. Catching up is said to exist if the value of beta is negative and significant. Since catching up does not necessarily imply narrowing of national productivity inequalities, sigma-convergence which measures inequality, was estimated for the same variables. The results showed evidence of the catch-up process, but failed to find a narrowing of productivity inequalities among countries.