# 27. Is Regional Integration  Beneficial

 For Agricultural Productivity in Sub-Saharan Africa?

 The Case of CEMAC and WAEMU

Juliet U.Elu

Gregory N. Price

 Abstract

This paper examines the effects of regional euro-currency integration on agricultural productivity in Sub-Saharan Africa. We utilize a propensity score matching estimator to estimate the treatment effect of Sub-Saharan African countries joining the CFA Franc Zone and WAEMU on agricultural value-added from 1960 - 2013. Even though these regional blocs were created to promote cooperation and improve the standard of living for member countries, the process of sub-regional integration in African and other parts of the world has also been a source of external shocks for output.  Our parameter estimates reveal that CFA Franc Zone membership has positive effects on agricultural value-added. This suggests that as an institutional arrangement with public and private investment in agriculture, regional currency union membership can improve competitiveness in agricultural productivity in Sub-Saharan Africa, which is an important component of achieving economic growth that is effective in reducing poverty.

JEL Classification:  C23, F15, N17, O11, O47

Key Words: Africa, Regional Integration, Agricultural Productivity, Economic Growth

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