The contribution of economic sectors to economic growth: The case of COMESA countries

Hassane Mahamad VELONJARA, Ladson Pires ANDRADE

Abstract


Abstract. This research examines the contribution of the Economic Sector, such as the agriculture, industry, service and FDI to Economic Growth in COMESA countries. A balanced panel data has been used over the period 2000-2019 for 12 COMESA countriessuch as Burundi, Comoros, the Democratic Republic of Congo, Egypt, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Uganda, Zambia, and Zimbabwe. The ARDL resultsshowed that in the short-run all the economic sector has a positive contribution to the GDP growth. Meanwhile, in the long-term the agriculture sector and FDI do not contribute to the economic growth of those selected countries; but the service and industry sector will have a great influence on the GDP. Therefore, the error correction model was used to analyze the long-term effect of agriculture, industry, service and FDI on GDP. The results suggest that in the short run, the agricultural sector and FDI have a positive effect on growth; in addition, the service and industrial sectors have a long-standing effect on GDP growth in countries of COMESA. Finally, we conclude with some recommendations.

Keywords. Economic sectors, Economic growth, ARDL, COMESA.

JEL. C23, F62, N17, F43.

Keywords


Economic Sectors; Economic Growth; ARDL; COMESA.

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DOI: http://dx.doi.org/10.1453/jel.v7i4.2148

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