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1 – 3 of 3Chi Aloysius Ngong, Chinyere Onyejiaku, Dobdinga Cletus Fonchamnyo and Josaphat Uchechukwu Joe Onwumere
This paper investigates the impact of bank credit on agricultural productivity in the Central African Economic and Monetary Community (CEMAC) from 1990 to 2019. Studies’ results…
Abstract
Purpose
This paper investigates the impact of bank credit on agricultural productivity in the Central African Economic and Monetary Community (CEMAC) from 1990 to 2019. Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting.
Design/methodology/approach
Agricultural value added (AGRVA) to the gross domestic product (GDP) proxies agricultural productivity while domestic credit to the private sector by banks (DCPSB), broad money supply, land, inflation (INF), physical capital (PHKAP) and labour supply are explanatory variables. The autoregressive distributed lag technique is utilized.
Findings
The co-integration test results show a long-run co-integration among the variables. The findings disclose that DCPSB, land and PHKAP impact positively on the AGRVA. Broad money supply, INF and labour impact negatively on the AGRVA to the GDP.
Research limitations/implications
The results suggest that the CEMAC governments should encourage effective ways to increase bank credit flow to private enterprises in the agricultural sector through efficient bank's intermediation.
Practical implications
The governments should create more agricultural banks and improve the operation of existing ones to ensure direct credit to agricultural activities. The Bank of Central African Economic and Monetary Community should apply aggressive policy which eliminates all the bottlenecks undermining credit flow to the private sector in mutualism with agricultural productivity.
Social implications
The commercial banks should give more credit to private sector to mutually benefit the agricultural sector and the banking sector. The governments of the CEMAC economies should expand funding into the capital market which considerably boosts agricultural productivity.
Originality/value
Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting; some reveal positive impacts, some show negative impacts and others indicate U-shape behaviour. Hence, research is required to fill the lacuna.
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Thu Hang Pham and James Riedel
The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016.
Abstract
Purpose
The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016.
Design/methodology/approach
Originating from the question of whether there is an endogenous problem between the structure of economic growth by sector and some other factors in the process of impact on poverty reduction, the paper has used the 2-Stage Least Squares method to deal with the endogenous issues.
Findings
Increasing the proportion of the industrial sector and the agricultural sector had great impacts on poverty reduction. In contrast, the increasing proportion of the service sector made the poverty rate higher. One noticeable thing is that economic growth was not significant for the goal of poverty reduction in 2010–2016. In addition, the process of urbanization, the increase in the labor rate and literacy rate contributed positively to poverty reduction achievements. Finally, population growth was also one of the reasons hindering Vietnam’s successful poverty reduction process.
Practical implications
Accelerating the process of economic restructuring in the direction of increasing the proportion of the industry is accompanied by more attention to agricultural development than the service sector. Employment creation policies should be promoted. Maintaining population control by educating poverty reduction awareness for the poor will have a positive effect on long-term poverty reduction.
Originality/value
Research on the growth structure by sector affecting poverty reduction in Vietnam is still relatively limited. The study of relationships in the context of endogenous existence is still quite limited in Vietnam. Therefore, this paper has focused on the question of sectoral economic growth affects poverty in the interrelation among sectors in the process of economic development.
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This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of…
Abstract
Purpose
This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of gross domestic product (GDP). The study specifically focuses on the value-added share as a percentage of GDP in the agricultural, manufacturing, industrial, and service sectors using time series data from 1988 to 2019.
Design/methodology/approach
The study utilizes the autoregressive distributive lag (ARDL) bound test framework for estimation, based on the conclusions drawn from the augmented Dickey-Fuller and Phillips–Perron unit root tests, which provide evidence of a mixed order of integration.
Findings
The result reveals that agriculture value-added (AVA), manufacturing value-added (MVA), industrial value-added (IVA), and services value-added (SVA) have a positive and significant impact on poverty alleviation in both the short and long run. However, the agriculture sector is found to be more effective in reducing poverty compared to the other sectors examined in this study. Additionally, this study challenges the notion that SSA countries have undergone an immature structural transformation. Instead, it reveals a pattern of stagnant structural transformation, as indicated by the lack of growth in the industrial and manufacturing value-added shares of GDP.
Practical implications
To enhance productivity and reduce poverty, SSA economies should adopt a development strategy that prioritizes heavy manufacturing and industrial sectors, leading to a transition from the agricultural to the secondary and tertiary sectors.
Originality/value
The study contributes to the emerging literature on structural transformation by investigating which sector is more efficient in reducing poverty in SSA countries, using the value-added share as a percentage of GDP for agricultural, manufacturing, industrial, and service sectors. The study also aims to determine if SSA countries have experienced immature structural transformation due to the growing share in the service sector.
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