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Contributions of the agricultural value-added output to employment creation and regional trade integration in sub-Saharan Africa
Abstract
This study ascertained the extent to which agricultural value-added output translates to employment creation and regional integration in sub-Saharan Africa. Observations were drawn from 22 countries in the region and a Dynamic panel data Econometric model of the Generalized Method of Moment (GMM) was applied from 2000 to 2017. The data for this study were collected from World Bank Development Indicators, and a combination of Okun’s law for growth and Ohlin-Vanek (1968) was adopted. Evidence from the study revealed that increased agricultural value-added output reduced unemployment by 0.102%, while regional integration increased by 0.441%. The long-run elasticity of agro-allied industrialization output to regional trade was 0.56%. Hence, the study supports agricultural policies that promote agricultural value-added output to improve regional integration and a reversed unemployment trend in the region.
