Infrastructure Governance and Agricultural Development in Sub-saharan Africa

Abstract

This research project examines the causal relationship between infrastructure governance and agricultural development in Sub-Saharan Africa. Researchers have recognized infrastructure as an important determinant of agricultural development. Insights on infrastructure governance have, however, not yet been incorporated into this literature, partly due to a lack of data on infrastructure governance. This research project solves both research gaps. Data on transportation, power, and water infrastructure governance is created by aggregating Afrobarometer survey data measuring individual perceptions of the government's performance regarding transportation, power, and water infrastructure. The mean of these three variables is used to measure infrastructure governance. This study computes agricultural production function with infrastructure governance as the independent variable and agricultural output as well as agricultural labor productivity as dependent variables while controlling for agricultural production factors (land, labor, capital, temperature, and rainfall). The empirical data analysis uncovers that good infrastructure governance contributes to agricultural development in Sub-Saharan Africa by raising agricultural outputs. It does not evoke higher agricultural labor productivity, though. This implies that good infrastructure governance serves as an incentive to increase the factors of production used but not as an incentive to improve the yields per factor of production ratio. Furthermore, good transportation infrastructure governance causes agricultural output growth. However, power and water infrastructure governance do not statistically significantly contribute to agricultural development. Transportation infrastructure governance is more important for agricultural development than the two other types due to transportation infrastructure's public good nature and the importance of transportation infrastructure for agriculture. The most important recommendation to be derived from this research project is for African governments to improve their infrastructure governance by implementing accountability as well as public participation in planning, enforcing sound and clear regulatory policy frameworks, ensuring the rule of law, and preventing corruption.