The processing of agricultural raw materials in improving human development in WAEMU countries
Purpose. This study analyses the effects of the conversion of agricultural production on the well-being of the population of the countries of the West African Economic Monetary Union (WAEMU). It also analyses the link between the agricultural sector and the well-being of producers in the eight count...
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| Format: | Article |
| Language: | Bulgarian |
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Innovations and Sustainability Academy
2024-09-01
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| Series: | Journal of Innovations and Sustainability |
| Subjects: | |
| Online Access: | https://is-journal.com/is/article/view/313 |
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| Summary: | Purpose. This study analyses the effects of the conversion of agricultural production on the well-being of the population of the countries of the West African Economic Monetary Union (WAEMU). It also analyses the link between the agricultural sector and the well-being of producers in the eight countries.
Results. The manufacturing agricultural added value representing the variable of interest of the study, has a positive and significant long-term coefficient. This result shows that the added value of agricultural raw material processing industries positively affects the human development index. An increase of one percentage point in the agricultural industrial sector in WAEMU countries leads to a long-term improvement in human development of 0.0017 percentage points. This is due to the investment effect that occurs in the long run, and trade openness has a positive impact on both long- and short-term welfare.
Scientific novelty. The originality of this study is focused on improving human development through the processing of agricultural products in WAEMU countries. The results indicate that the processing of agricultural products has a positive effect on human development in the long term but not significant in the short term. Similarly, the non-manufacturing sector contributes positively to the achievement of human development in the WAEMU zone in the long term.
Practical value. The study concludes by suggesting to the political decision-makers of the WAEMU countries to set up a partnership between producers of agricultural raw materials and processors that can lead to the establishment of a purchase contract. This could improve the well-being of agricultural producers. We propose to subsidise the development of processing enterprises in the union, which will encourage processors to increase production. In addition, a policy of import taxation is proposed to encourage domestic consumption of processed products. In order to provide agricultural and non-agricultural processors with a skilled workforce, governments should encourage education through productive public investment. |
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| ISSN: | 2367-8151 |