Interactions Between Agricultural Export and Growth in Southern African Countries: Evidence from Panel Co-Integration

Background and Objective: The low drive of agricultural export in most African countries has a serious implication for agricultural growth in these countries. This study investigated the relationship and drivers of agricultural growth. Materials and Methods: The study adopted the proposition of the Breusch and Pagan LM test to perform the cross-sectional dependency test and the Pedroni residual co-integration test was used to establish co-integration. The study analyzed the second-generation unit root. All the variables except agricultural labor were stationary after the first difference. Results: The result obtained from Kao residual co-integration test was statistically significant at a 1% level of confidence therefore, the study failed to accept the null hypothesis and concluded that there is a long-run relationship among the variables. Also, growth and import showed a uni-directional relationship, likewise agricultural land and agricultural import. A long-run Granger causality was affirmed by agricultural growth and agricultural import. Conclusion: It is evident that agricultural import-controlled policies will have less effect on the agricultural growth in Southern African countries. Also, negative shocks to agricultural labor will negatively affect agricultural capital and agricultural growth.