PRICISM v. STRUCTURALISM IN SUB‐SAHARAN AFRICAN AGRICULTURE

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Abstract
A re‐examination of data frequently used to support the notion of price discrimination against agriculture in Sub‐Saharan Africa suggests that the extent of agricultural taxation has been overstated. In addition, a review of the evidence on the aggregate agricultural supply response to price indicates that elasticities are low, with the most plausible estimates lying in the range 0.2–0.4. Eight structural constraints explaining the poor supply response, to which Sub‐Saharan Africa is particularly prone, are identified. Further evidence is presented to show that output responds more significantly to structural factors than to price, and that investment in rural infrastructure will bring about an improved response to price. Capital constraints limit price‐induced private investment, so that public sector led investment in new technology and rural infrastructure would appear to be the single most important strategy for reversing the decline in African agriculture.