Entrepreneurship and agriculture resources on national productivity in Africa: exploring for complementarities, synergies and thresholds

Abstract

Purpose

Existent literature suggests that Africa is heavily endowed with agriculture resources and entrepreneurship remains an important mechanism for promoting national productivity and other economic outcomes. Despite these, empirical evidence on how agriculture resources promote the effect of entrepreneurship on national productivity in Africa is nonexistent given the abundance of agriculture resources and the need for Africa to increase its productivity, which has implications for improving welfare. Hence, this study aims to examine the interplay of how agriculture resources and entrepreneurship influence national productivity by way of exploring for threshold and complementarity effects of agriculture resources in Africa.

Design/methodology/approach

This uses panel data of 29 Africa economies between 2006 and 2016 in a bootstrap quantile regression model.

Findings

First, it is reported that initial levels of agriculture resources in the form of crop and arable lands reduce national productivity while the extreme increase in agriculture resources promotes national productivity in Africa. This implies a nonlinear direct U-shape effect of agriculture resources on national productivity indicating that the enhancing effect of agriculture resources on national productivity is only achieved beyond a certain threshold of average agriculture resources. Second, agriculture resources complement entrepreneurship (which initially reduced national productivity) to promote national productivity. This implies that there is a synergetic-complementarity relationship between entrepreneurship and agriculture resources on national productivity.

Practical implications

These findings suggest that governments that are interested in boosting national productivity through agriculture resources may have to commit more financial resources to develop and reclaiming more agriculture resources (in the form of crop and arable lands) given that some threshold of agriculture resources are needed to promote national productivity. Similarly, developing agriculture resources by policymakers can help complement entrepreneurship to further improve the effects of entrepreneurship on national productivity.

Originality/value

This study attempts to present first-time evidence on the interplay between agriculture resources and entrepreneurship on national productivity by way of exploring for threshold and complementarity effects of agriculture resources in Africa.

Citation

Kriese, M., Nabieu, G.A.A., Ofori-Sasu, D. and Kusi, B.A. (2021), "Entrepreneurship and agriculture resources on national productivity in Africa: exploring for complementarities, synergies and thresholds", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 15 No. 5, pp. 643-664. https://doi.org/10.1108/JEC-12-2020-0218