Do Agricultural Raw Materials Imports Cause Agricultural Growth? Empirical Analysis from North Africa

Bakari, Sayef (2018): Do Agricultural Raw Materials Imports Cause Agricultural Growth? Empirical Analysis from North Africa.

Abstract

The aim of this paper is to study empirically the impact of agricultural raw materials imports on agricultural growth since it never done before. We have made this study in the context of three countries from North Africa (Tunisia, Morocco and Egypt) for the period 1965 – 2016. By using cointegration analysis and vector error correction model, empirical analysis proves that agricultural raw materials imports produce a positive effect on agricultural growth in the long run for all the three countries and cause agricultural growth in the short run in the case of Tunisia and Egypt. It is seen that agricultural raw materials imports are a source of economic growth in the agricultural sector. For this reason, countries of North Africa should adopt to integrate foreign technology imports and not technological innovation to stimulate agricultural sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: Agricultural Raw Materials Imports, Agricultural Growth, VECM, North Africa.
• Subjects: F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F15 - Economic Integration; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L66 - Food ; Beverages ; Cosmetics ; Tobacco ; Wine and Spirits; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D ; Agricultural Technology ; Biofuels ; Agricultural Extension Services; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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