Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 424

Full Length Research Paper

Effect of research and development on agricultural sector growth in the East African community

Lawrence Were Ouru
  • Lawrence Were Ouru
  • Department of Economics, Egerton University, P. O. Box 536 Njoro, Kenya.
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Lawrence Kibet
  • Lawrence Kibet
  • Department of Economics, Egerton University, P. O. Box 536 Njoro, Kenya.
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Aquilars Kalio
  • Aquilars Kalio
  • Department of Economics, Egerton University, P. O. Box 536 Njoro, Kenya.
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Naftaly Mose
  • Naftaly Mose
  • Department of Economics, Technical University of Kenya, P. O. Box 52428-0200 Nairobi, Kenya.
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  •  Received: 30 August 2017
  •  Accepted: 09 November 2017
  •  Published: 28 February 2018

Abstract

This study empirically examined the effect of research and development on agricultural sector growth in East African Community from the year 2000-2014. According to the endogenous growth theory, research and development leads to increase in the stock of knowledge which in turn has got spill over effects hence leads to economic growth. However, little is known on the effect of R&D on the agricultural sector in the EAC hence the study sought to bridge this knowledge gap. The objective of this study was to determine the effect of agricultural research and development on agricultural sector growth. Panel data analysis was used with stationarity test conducted using Levin-Lin- Chu panel unit root test. Stationarity test showed that some variables were stationary at level while others were stationary after first differencing. Random effects regression results showed that explanatory variables had a positive and significant relationship with the dependent variable and the recommendations are: That R&D to be allocated more funds; more research scientists and agricultural labourers to be employed, trained and motivated through better remuneration and good work environment; R&D based knowledge to be disseminated to the public through publications; firms to train agricultural labourers on how new technologies are being used and also to allocate them duties and responsibilities that match their skills and that agricultural capital costs be subsidised.

 

Key words: Agricultural sector growth, research and development, East Africa Community, economic growth, stationarity, and regression results.