africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
negative correlation between the two variables (r = -0.54), suggesting that countries
with costly physical access to fertilizer markets face special challenges in boosting
their agricultural productivity. McArthur and McCord (2014) provide a more detailed
assessment of potential implications for economic growth and structural change.
The correlation between fertilizer use and physical ease of access to fertilizer has
potential implications for economic strategy. For example, Dercon (2009) presents
a thoughtful typology of African contexts and suggests that landlocked countries
are most likely to benefit from prioritized agricultural support, since they have few
comparative advantages in other industries. However, Figure 26.9 underscores a
fundamental economic and agronomic challenge for countries that are far from fertilizer
plants. It might actually be that the returns on public investment in agriculture are
higher in coastal economies that have cheaper access to global commodity markets.
Figure 26.9: Relation between Fertilizer Use in 2012 and Distance to Nitrogen
Fertilizer Manufacturing Plants, Developing Countries
Source: McArthur and McCord, 2014, World Bank, 2014.
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