Research Article
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The impact of sectoral value added to economic growth in a developing country: The Zambian case

Year 2023, Volume: 6 Issue: 3, 250 - 269, 30.11.2023

Brian Muyambiri

https://doi.org/10.58308/bemarej.1289111

Abstract

With the help of the ARDL bounds test approach, the analysis of the effect of sectoral value added on economic growth in Zambia was made for the period 1994 – 2021. It has been observed that agriculture, industry and service sectors have a positive effect on economic growth in the long run. The effect of imports on economic growth was negative as expected, while the manufacturing sector and exports were found to be insignificant. The same relationship between imports and growth is also found in the short run. All other independent variables were found to have no effect on economic growth in the short run. For this reason, promotion of agriculture, industry and service sectors should be given priority for long-term impact.

Keywords

Impact analysis Agriculture Industry Service sector Economic Growth

Supporting Institution

University Of Johannesburg

References

  • Bashir, A., Suhel, A., Azwardi, A., Atiyatna, D. P., Hamidi, I., & Adnan, N. (2019). The causality between agriculture, industry, and economic growth: Evidence from Indonesia. Etikonomi, 18(2), 155-168. doi:10.15408/etk.v18i2.9428
  • Block, S. A. (1999). Agriculture and economic growth in Ethiopia: Growth multipliers from a four‐sector simulation model. Agricultural Economics, 20(3), 241-252. doi: 10.1016/S0169-5150(99)00007-9
  • Blunch, N.-H., & Verner, D. (2006). Shared Sectoral growth versus the dual economy model: Evidence from Côte d'Ivoire, Ghana, and Zimbabwe. African Development Review, 18, 283-308. doi: 10.1111/j.1467-8268.2006.00150.x
  • Chu, A. C., Peretto, P. F., & Wang, X. (2022). Agricultural revolution and industrialization. Journal of Development Economics, 158, 102887. doi: 10.1016/j.jdeveco.2022.102887
  • Haraguchi, N., Cheng, C. F. C., & Smeets, E. (2017). The importance of manufacturing in economic development: Has this changed?. World Development, 93, 293-315. doi: 10.1016/j.worlddev.2016.12.013
  • Hirschmann, A. O. (1958). The strategy of economic development. Yale University Press, New Haven, CT.
  • Hwa, E. C. (1988). The contribution of agriculture to economic growth: some empirical evidence. World development, 16(11), 1329-1339. doi: 10.1016/0305-750X(88)90208-2
  • Khan, W., Jamshed, M., & Fatima, S. (2020). Contribution of agriculture in economic growth: A case study of West Bengal (India). Journal of Public Affairs, 20(2), e2031. doi: 10.1002/pa.2031
  • Kobayashi, S., Tanji, H., Saito, K., Huang, W., & Tada, M. (2009). Industrial structure of Cambodia and the role of agriculture and fishery in its development. Japan Agricultural Research Quarterly: JARQ, 43(4), 309-316. doi: 10.6090/jarq.43.309
  • Levine, R. (1997). Financial development and economic growth: Views and Agenda. Journal of Economic Literature, 35(2), 688-726.
  • Lewis, W. A. (1954). Economic development with limited supplies of labour. Manchester School of Social Science, 22(2), 139-191. doi: 10.1111/j.1467-9957.1954.tb00021.x
  • Muyambiri, B., & Odhiambo, N. (2017). The impact of financial development on investment in Botswana: An ARDL-Bounds testing approach. Economia Internazionale/International Economics, 70(2), 193-216.
  • Muyambiri, B., & Odhiambo, N. M. (2018). The impact of financial development on investment: A review of international literature. Organizations and Markets in Emerging Economies, 9(2), 167-192. doi: 10.15388/omee.2018.10.00009
  • Pelinescu, E. (2015). The impact of human capital on economic growth. Procedia Economics and Finance, 22, 184-190. doi: 10.1016/S2212-5671(15)00258-0
  • Perron, P. (1997). Further evidence on breaking trend functions in macroeconomic variables. Journal of Econometrics, 80(2), 355-385. doi: 10.1016/S0304-4076(97)00049-3
  • Pesaran, M. H., Shin, Y., & Smith, R. (2001). Bound testing approaches to the analysis of level relationship. Journal of Applied Econometrics, 16(3), 289-326. doi: 10.1002/jae.616
  • Phiri, J., Malec, K., Majune, S. K., Appiah-Kubi, S. N. K., Gebeltová, Z., Maitah, M., Maitah, K., & Abdullahi, K. T. (2020). Agriculture as a determinant of Zambian economic sustainability. Sustainability, 12(11), 4559. doi: 10.3390/su12114559
  • Tufaner, M. B. (2021). The impacts of sectoral value added to economic growth in Turkey. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 10(2), 1166-1178. doi: 10.15869/itobiad.864991
  • World Bank Group. (2023). The World Bank Data. https://data.worldbank.org/?locations=BW-XT, Accessed: 15/03/2023
  • Zhang, Y., & Diao, X. (2020). The changing role of agriculture with economic structural change–the case of China. China Economic Review, 62, 101504. doi: 10.1016/j.chieco.2020.101504

Gelişmekte olan bir ülkede sektörel katma değerin ekonomik büyümeye etkisi: Zambiya örneği

Year 2023, Volume: 6 Issue: 3, 250 - 269, 30.11.2023

Brian Muyambiri

https://doi.org/10.58308/bemarej.1289111

Abstract

ARDL sınır testi yaklaşımı yardımıyla Zambiya'da sektörel katma değerin ekonomik büyümeye etkisinin analizi 1994 – 2021 dönemi için yapılmıştır. Uzun dönemde tarım, sanayi ve hizmet sektörlerinin olumlu ve ekonomik büyümeyi önemli ölçüde etkilediği görülmüştür. İthalatın ekonomik büyüme üzerindeki etkisi beklendiği gibi negatif, imalat sektörü ve ihracat ise önemsiz bulunmuştur. İthalat ile büyüme arasındaki aynı ilişki kısa dönemde de bulunmaktadır. Diğer tüm bağımsız değişkenlerin kısa dönemde ekonomik büyüme üzerinde bir etkisi olmadığı bulunmuştur. Bu nedenle uzun vadeli etki için tarım, sanayi ve hizmet sektörlerinin teşvikine öncelik verilmelidir.

Keywords

Etki analizi Tarım Sanayi Hizmet sektörü Ekonomik Büyüme

References

  • Bashir, A., Suhel, A., Azwardi, A., Atiyatna, D. P., Hamidi, I., & Adnan, N. (2019). The causality between agriculture, industry, and economic growth: Evidence from Indonesia. Etikonomi, 18(2), 155-168. doi:10.15408/etk.v18i2.9428
  • Block, S. A. (1999). Agriculture and economic growth in Ethiopia: Growth multipliers from a four‐sector simulation model. Agricultural Economics, 20(3), 241-252. doi: 10.1016/S0169-5150(99)00007-9
  • Blunch, N.-H., & Verner, D. (2006). Shared Sectoral growth versus the dual economy model: Evidence from Côte d'Ivoire, Ghana, and Zimbabwe. African Development Review, 18, 283-308. doi: 10.1111/j.1467-8268.2006.00150.x
  • Chu, A. C., Peretto, P. F., & Wang, X. (2022). Agricultural revolution and industrialization. Journal of Development Economics, 158, 102887. doi: 10.1016/j.jdeveco.2022.102887
  • Haraguchi, N., Cheng, C. F. C., & Smeets, E. (2017). The importance of manufacturing in economic development: Has this changed?. World Development, 93, 293-315. doi: 10.1016/j.worlddev.2016.12.013
  • Hirschmann, A. O. (1958). The strategy of economic development. Yale University Press, New Haven, CT.
  • Hwa, E. C. (1988). The contribution of agriculture to economic growth: some empirical evidence. World development, 16(11), 1329-1339. doi: 10.1016/0305-750X(88)90208-2
  • Khan, W., Jamshed, M., & Fatima, S. (2020). Contribution of agriculture in economic growth: A case study of West Bengal (India). Journal of Public Affairs, 20(2), e2031. doi: 10.1002/pa.2031
  • Kobayashi, S., Tanji, H., Saito, K., Huang, W., & Tada, M. (2009). Industrial structure of Cambodia and the role of agriculture and fishery in its development. Japan Agricultural Research Quarterly: JARQ, 43(4), 309-316. doi: 10.6090/jarq.43.309
  • Levine, R. (1997). Financial development and economic growth: Views and Agenda. Journal of Economic Literature, 35(2), 688-726.
  • Lewis, W. A. (1954). Economic development with limited supplies of labour. Manchester School of Social Science, 22(2), 139-191. doi: 10.1111/j.1467-9957.1954.tb00021.x
  • Muyambiri, B., & Odhiambo, N. (2017). The impact of financial development on investment in Botswana: An ARDL-Bounds testing approach. Economia Internazionale/International Economics, 70(2), 193-216.
  • Muyambiri, B., & Odhiambo, N. M. (2018). The impact of financial development on investment: A review of international literature. Organizations and Markets in Emerging Economies, 9(2), 167-192. doi: 10.15388/omee.2018.10.00009
  • Pelinescu, E. (2015). The impact of human capital on economic growth. Procedia Economics and Finance, 22, 184-190. doi: 10.1016/S2212-5671(15)00258-0
  • Perron, P. (1997). Further evidence on breaking trend functions in macroeconomic variables. Journal of Econometrics, 80(2), 355-385. doi: 10.1016/S0304-4076(97)00049-3
  • Pesaran, M. H., Shin, Y., & Smith, R. (2001). Bound testing approaches to the analysis of level relationship. Journal of Applied Econometrics, 16(3), 289-326. doi: 10.1002/jae.616
  • Phiri, J., Malec, K., Majune, S. K., Appiah-Kubi, S. N. K., Gebeltová, Z., Maitah, M., Maitah, K., & Abdullahi, K. T. (2020). Agriculture as a determinant of Zambian economic sustainability. Sustainability, 12(11), 4559. doi: 10.3390/su12114559
  • Tufaner, M. B. (2021). The impacts of sectoral value added to economic growth in Turkey. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 10(2), 1166-1178. doi: 10.15869/itobiad.864991
  • World Bank Group. (2023). The World Bank Data. https://data.worldbank.org/?locations=BW-XT, Accessed: 15/03/2023
  • Zhang, Y., & Diao, X. (2020). The changing role of agriculture with economic structural change–the case of China. China Economic Review, 62, 101504. doi: 10.1016/j.chieco.2020.101504
There are 20 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Article
Authors

Brian Muyambiri 0000-0003-0769-7261

Publication Date November 30, 2023
Acceptance Date September 6, 2023
Published in Issue Year 2023 Volume: 6 Issue: 3

Cite

APA Muyambiri, B. (2023). The impact of sectoral value added to economic growth in a developing country: The Zambian case. Business Economics and Management Research Journal, 6(3), 250-269. https://doi.org/10.58308/bemarej.1289111
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