Impact of Economic Globalisation on Agricultural Value-Added: The African Region Experience

Abstract

Globalisation has been a critical driver of economic growth in many nations. However, the agricultural sector has yet to realise its full potential in terms of agricultural value-added and the distribution of benefits to primary producers within value chains. Notably, the African region possesses a high potential for agricultural value-addition compared to other regions. This research examines the impact of economic globalisation on agricultural value-added within the African context. Using advanced statistical techniques, including panel data regression and multiple linear regression, the study assesses the influence of globalisation on agricultural value-added across 26 African countries from 2000 to 2021. The findings indicate that, while certain countries have benefitted significantly from economic globalisation, enhancing their agricultural value, the majority still require a greater focus on optimising agricultural value addition. Senegal exhibited the most pronounced impact on agricultural value addition, whereas Burkina Faso, Morocco, South Africa, Tunisia, and Uganda showed negligible impacts. Policies aimed at optimising fertiliser inputs, advancing technology, developing the technical knowledge, skills, and attitudes of the agricultural labour force, facilitating foreign market access for raw materials, and promoting sustainable agricultural practices could help enhance value addition and support the overall economic development of the African region. This research contributes to the knowledge-based economy by providing empirical insights into the factors driving agricultural value-added, underscoring the role of knowledge creation, diffusion, and application in boosting agricultural productivity and economic growth in the African region.