Agro-processing Output and Agricultural Sector Employment: Evidence from South Africa

This paper empirically examined the relationship between agro-processing sub-sector output and agricultural sector employment in South Africa by using time series data from 1975-2015. The study employed ARDL-bounds testing approach to examine the existence long-run equilibrium relationship. The resu...

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Bibliographic Details
Published in:	Acta Universitatis Danubius. Œconomica 2017-01, Vol.13 (2), p.174-184
Main Authors:	Toyin, Megbowon Ebenezer, Sola, Ojo Oloruntimilehin, John, Olasehinde Timilehin
Format:	Article
Language:	eng
Subjects:	Agro-processing Agricultural Sector Employment ARDL-Bound Testing TYDL South Africa Economy
Online Access:	Get full text
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Summary:	This paper empirically examined the relationship between agro-processing sub-sector output and agricultural sector employment in South Africa by using time series data from 1975-2015. The study employed ARDL-bounds testing approach to examine the existence long-run equilibrium relationship. The result of the ARDL test confirmed the existence of long-run relationship among the variables examined. The long-run estimate result revealed that the relationship between agro-processing output and agricultural sector employment is negative in the long-run. The study further examined the causality between agro-processing output and agricultural sector employment using TYDL causality test and it observed a unidirectional causal relationship running from agro-processing output to agricultural sector employment. While it is deduced that agro-processing sector output is found to be unable to promote agricultural sector employment, this study recommends stimulation of agricultural export for agricultural sector employment generation in South Africa.
ISSN:	2065-0175 2067-340X