Agricultural Productivity and Regional Trade Integration in West Africa

This study investigates the relationship between regional trade integration and agricultural productivity growth in West Africa. Using panel data from 1995 to 2019, we first calculate TFP growth indices and its decomposition using a non-parametric bootstrap Malmquist-DEA index then we examine its association with variables that capture trade openness, accounting for other factors such as weather variables and agricultural R&D expenditure. The results indicate an average output-weighted annual TFP growth of 1.7% for the region, primarily driven by technological change (2.2%), despite a marginal decline in technical efficiency change (-0.05%). The regression results indicate that regional trade integration is significantly associated with agricultural productivity growth. We also learn that agricultural R&D investment has played a crucial role in fostering agricultural productivity growth, while rising temperatures impacts it negatively, highlighting the sector's vulnerability to climate change. This study underscores the importance of deepening intra-regional trade under the ECOWAS framework.