FROM MAPUTO TO MALABO: HOW HAS CAADP FARED?
ReSAKSS Working Paper
This paper uses panel data on 25 African countries from 2001 to 2014 and a country and year fixed-effects model to estimate the impacts of the Comprehensive Africa Agriculture Development Programme (CAADP), an agriculture-led integrated framework of development priorities in Africa, on government agricultural expenditure, official development assistance (ODA) for agriculture, and land and labor productivity. Instrumental variables and Heckman correction (inverse mills ratio) are used to address potential endogeneity and selection bias, respectively. The results show that implementing CAADP and reaching higher stages of implementation has had significant positive impact on government agricultural expenditure, ODA for agriculture, and land and labor productivity. The impact on government agricultural expenditure wanes over time, suggesting that there is substitution effect between the government’s own funding and external sources of funding for the sector as countries advance in CAADP implementation. Implications for maintaining the positive impacts, as well as for further research, are discussed.
International Food Policy Research Institute (IFPRI)