Leveraging regional growth dynamics in African agriculture

This study focuses on public investments and policy reforms for leveraging growth spillovers at the Africaregional level. It reviews first the theory and evidence of knowledge and growth spillovers generally andsecond the evidence in the African context. Given the limited and scattered evidence of actual pastspillovers, it reviews recent ex ante simulations using partial and general equilibrium models to stress thepotential for spillovers from greater cooperation in agricultural research, and from trade liberalization,policy harmonization and investments in infrastructure. The results show that permitting greater crossbordertransfers and adopting improved technologies could have large spillover multiplier effects onoverall economic welfare in the region. And simply reducing African countries’ trade barriers andimproving cross-border transport could increase agricultural incomes by as much as 10%. These twoexamples confirm that regional cooperation in agricultural research and harmonization and liberalization ofregional trade systems are two important areas that have yet to be optimally harnessed to generate largerspillovers and enhance regional economic take-off.