By: Yaqoob Jelili & Oke Margaret Adebimpe
Pages: 257–274, Volume: 3, Number: 2
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 8/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Does Public Agricultural Expenditure Drive Farm Efficiency? Panel Evidence From West Africa, 2003-2024
Abstract:
This study examines the direct impact of public agricultural expenditure (PAE) on total factor productivity (TFP) across selected West African countries over the period 2003-2024, encompassing two decades of post-Maputo Declaration agricultural policy reform. Using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, chosen for their robustness to cross-sectional dependence and slope heterogeneity confirmed through prior diagnostic tests, alongside System Generalised Method of Moments (GMM) for robustness, the study establishes a positive and statistically significant elasticity of TFP with respect to PAE in the range of 0.418 to 0.516. Complementary controls for fertiliser consumption, agricultural trade openness, rural infrastructure, and precipitation are incorporated. Pre-estimation diagnostics confirm cross-sectional dependence, mixed integration orders, panel cointegration among I(1) variables, and significant slope heterogeneity. The common factor loading, exceeding 0.70 in both AMG and CCEMG specifications, identifies region-wide shocks, including commodity cycles, climate events, and donor-driven programmes, as major contributors to aggregate productivity variance. Results imply that sustained fiscal commitment to agriculture, directed at productive capital such as irrigation, research and development, and rural infrastructure, constitutes an independent and measurable pathway to closing the agricultural productivity gap in West Africa.
Keywords: Public agricultural expenditure, Total factor productivity, AMG, CCEMG, Panel data
How to Cite
Yaqoob, J., & Oke, M. A. (2026). Does public agricultural expenditure drive farm efficiency? Panel evidence from West Africa, 2003–2024. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), 3(2), 257–274.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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