Analysis of Agricultural Exports and Economic Growth in Benin

Abstract

The agricultural sector remains a potential lever for economic growth in the South. Thus, agriculture now represents only 23% of GDP in low-income countries, 10% in intermediate countries and 2% in high-income countries. In this situation, our paper aims to empirically analyse the impact of agricultural exports on economic growth in Benin. The econometric specifications are derived from a neoclassical production function and use data covering the period 1970-2021. The empirical results show that agricultural exports have a positive effect on economic growth. The causality test proves the existence of a causal relationship from economic growth to agricultural exports. In particular, these results prove the importance of an economic policy favourable to the promotion of agricultural investment in Benin.