The agricultural productivity in Sub-Saharan Africa: an application of non-linear panel data models

Abstract

Despite the fact that sub-Saharan countries are characterised by high potentials in the agricultural sector, it seems that they do not exploit them. Even if many researchers recommend an increase in the use of chemical fertilizers so that higher agricultural productivity rates could be achieved, Africa is still behind in fertilizer use. In this dissertation, we try to explore the factors which determine the adoption and intensity of chemical fertilizer use. The analysis is based on a panel dataset from the Amhara region of Ethiopia. Both the farm characteristics and the socio-economic ones of the rural households are essential for taking the decision about the adoption and fertilizer use. The positive effects from the participation in MFIs and cooperatives and the negative effects from the credit constraints on the adoption, indicate the important role which the structure of rural credit markets and the access on credits play on the use of chemical fertilizers.