THE EFFECTS OF AGRICULTURAL FINANCE AND FINANCIAL DEVELOPMENT ON THE ECONOMIC GROWTH OF THE SSA COUNTRIES

This study examined the effects of agricultural finance and financial development on the economic growth of the SSA from 2000 to 2021. The study employed the panel ARDL regression models and the panel VAR-based Granger causality test as tools for data analysis. The study revealed that capital accumulation impacts agricultural performance negatively in the long run; the effect on economic growth is negative in the short run but positive in the long run. Also, there is no evidence for the short-run impact of labour on both agricultural performance and economic growth; however, the long-run effect is positive and significant. There is a piece of strong evidence supporting financial development as an agricultural performance and economic growth drivers both in the short and long run. Per capita income which reflects the individual purchasing power impacted agricultural performance only in the long run whereas its impact on economic growth which is only significant in the long run is negative. Further, it is revealed in the study that the role played by agricultural performance in driving economic growth cannot be overemphasised both in the short run and long run. Therefore, this study recommends strengthening institutional capacity for financial sector monitoring through legislation and countercyclical buffers, promoting R&D and policies to enhance industrial and agricultural performance, and advancing financial institutions to optimise agriculture-linked industrialisation. Also, governments should encourage affordable agricultural credit, supported by awareness campaigns, and prioritise apprenticeship programs, reskilling and technology-driven R&D to boost labour productivity and sustain economic growth in Sub-Saharan Africa.