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<p>Agricultural value added (AVA) remains central to Africa’s development, yet its growth has fallen short of targets. While studies have examined research and development (R&amp;D), productivity, and globalisation separately, little is known about how these forces interact to influence agricultural transformation. We therefore examined the moderating effects of R&amp;D on AVA through total factor productivity, supporting the induced innovation hypothesis and highlighting the importance of absorptive capacity in enhancing innovation. The paper further examined how global integration moderates R&amp;D's effectiveness, aligning with global value chain theory, using data from 43 African countries from 2000 to 2019. Using the Augmented Mean Group (AMG) estimator, our findings show that agricultural R&amp;D investments are influential and yield greater gains only when complemented by higher productivity and global integration. However, external shocks remain dominant influences. These results suggest that African economies should combine R&amp;D investment with productivity reforms and strategic engagement in global markets to maximise agricultural value addition.</p>

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Agriculture value-added in Africa: have R&D investment and globalisation been influential?

  • 期刊论文

  • 发表日期：

    2026年7月1日

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  • Michael Lawer Tetteh,
  • Charles Andoh,
  • Anthony Q. Q.Aboagye ,
  • Godfred Amewu

摘要

Agricultural value added (AVA) remains central to Africa’s development, yet its growth has fallen short of targets. While studies have examined research and development (R&D), productivity, and globalisation separately, little is known about how these forces interact to influence agricultural transformation. We therefore examined the moderating effects of R&D on AVA through total factor productivity, supporting the induced innovation hypothesis and highlighting the importance of absorptive capacity in enhancing innovation. The paper further examined how global integration moderates R&D's effectiveness, aligning with global value chain theory, using data from 43 African countries from 2000 to 2019. Using the Augmented Mean Group (AMG) estimator, our findings show that agricultural R&D investments are influential and yield greater gains only when complemented by higher productivity and global integration. However, external shocks remain dominant influences. These results suggest that African economies should combine R&D investment with productivity reforms and strategic engagement in global markets to maximise agricultural value addition.