Impact of non-oil sectors on GDP/capita in selected African countries: evidence from panel analysis, Oluyemi Adeosun and Isaac Gbadamosi
Oluyemi Theophilus Adeosun
Department of Economics
University of Lagos, Lagos
Isaac Idris Gbadamosi
Department of Statistics
University of Ibadan, Ibadan
Purpose: The purpose of this paper is to investigate the impact or contribution of non-oil sectors on economic growth (GDP/capita) of some selected African countries using panel data analysis.
Design/methodology/approach: The paper focused on secondary data for the period 1991–2019 for macro parameters, including agriculture, industry, export and service, and GDP/capita received from World Development Indicators (WDI). Panel unit root tests like Levin, Lin and Chu test and Im, Pesaran and Shin test, Johansen co-integration test, Granger causality test and an error correction model were also applied to the data for analysis.
Findings: The study reveals no causality from agriculture to economic growth, which implies most of the African countries (used in this study) have neglected agriculture as a source of economic growth. The industry independent variable was of no effect on these countries’ economic growth, whereas the findings reveal that industry has causality on economic growth. Economic growth has no causality on the industry, which means the industry is not contributing to economic growth. The study also shows no causality from export and service to economic growth, but a causality runs from economic growth to export and service.
Originality/value: The paper examines the contribution of the non-oil sectors to economic growth in selected African countries.
Keywords: Agriculture; Economic growth; Export and service; Industry; Non-oil sector; Panel data.
Citation: Adeosun, O.T. and Gbadamosi, I.I. (2021), "Impact of non-oil sectors on GDP/capita in selected African countries: evidence from panel analysis", World Journal of Science, Technology and Sustainable Development, Vol. 18 No. 3, pp. 274-284. https://doi.org/10.1108/WJSTSD-03-2021-0037