| Literature DB >> 28018024 |
Philip G Pardey1, Robert S Andrade1, Terrance M Hurley1, Xudong Rao2, Frikkie G Liebenberg3.
Abstract
Research-enabled growth in agricultural productivity is pivotal to sub-Saharan Africa's overall economic growth prospects. Yet, investments in research and development (R&D) targeted to many national food and agricultural economies throughout Africa are fragile and faltering. To gain insight into what could be driving this trend, this article updates, summarizes and reassesses the published evidence on the returns to African agricultural R&D. Based on a compilation of 113 studies published between 1975 and 2014 spanning 25 countries, the reported internal rates of return (IRRs) to food and agricultural research conducted in or of direct consequence for sub-Saharan Africa averaged 42.3%py. In addition to the 376 IRR estimates, the corresponding 129 benefit-cost ratios (BCRs) averaged 30.1. Most (96.5%) of the returns-to-research evaluations are of publicly performed R&D, and the majority (87.6%) of the studies were published in the period 1990-2009. The large dispersion in the reported IRRs and BCRs makes it difficult to discern meaningful patterns in the evidence. Moreover, the distribution of IRRs is heavily (positively) skewed, such that the median value (35.0%py) is well below the mean, like it is for research done elsewhere in the world (mean 62.4%py; median 38.0%py). Around 78.5% of the evaluations relate to the commodity-specific consequences of agricultural research, while 5.5% report on the returns to an "all agriculture" aggregate. The weight of commodity-specific evaluation evidence is not especially congruent with the composition of agricultural production throughout Africa, nor, to the best that can be determined, the commodity orientation of public African agricultural R&D.Entities:
Keywords: Benefit-cost ratios; Internal rates of return
Year: 2016 PMID: 28018024 PMCID: PMC5176338 DOI: 10.1016/j.foodpol.2016.09.009
Source DB: PubMed Journal: Food Policy ISSN: 0306-9192 Impact factor: 4.552
Fig. 1Methodological variations.
Fig. 2The Published Returns-to-Research Evidence for sub-Saharan Africa, 1975–2014. Notes: The Rest-of-World in Panel a includes all the returns-to-research evaluations reported by Hurley et al. (2016) excluding those designated SSA evaluations. “Other” in Panel b includes graduate dissertations, conference papers and grey literature.
Fig. 3The Geography of Evaluations by Research Performer and User. Notes: In Panels a and b, “by-performer” reports the evaluation evidence in relation to where the research was performed; the “by user” compilation is in terms of where in SSA the results of the research were adopted and used. Countries are grouped according to FAO (2016) regional classifications. The percentages in Panel b indicate the share of each grouping relating to research involving CGIAR centers versus other (often national public) research agencies.
Fig. 4Evaluations by Commodity Categories. Notes: Commodities are grouped into categories according to FAO classifications (see notes to Table 3 for details). To maximize the concordance of the commodity categories presented here with those reported in Table 3, the “Others” category includes joint crop-livestock, agriculture-fishing and agriculture-aquaculture research, plus research on “other trees.” The stacked bar reports various commodity shares within the “Crop total” category.
Fig. 5Distribution of Internal-Rate-of-Return and Benefit-Cost-Ratios. Notes: Vertical axis represents relative frequency. For display purposes the plotted distribution was truncated at −50 and 200 in Panel a and at 0 and 110 in Panel b. ROWA refers to the overall number of evaluations excluding those of direct relevance to SSA (see Footnote 3).
Reported internal rate of return estimates by geographic region of research performer.
| Number of | Central tendency | Range | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Countries | Estimates | Publications | Mean | Median | Standard deviation | Minimum | Maximum | 5th Percentile | 95th Percentile | |
| Central | 2 | 17 | 4 | 52.7 | 35.0 | 57.1 | −2.3 | 188.0 | −2.3 | 188.0 |
| Eastern | 8 | 140 | 33 | 37.0 | 28.5 | 45.3 | −100.0 | 350.0 | −9.94 | 106.0 |
| Southern | 4 | 44 | 19 | 43.8 | 37.5 | 41.7 | −12.0 | 170.0 | 2.0 | 135.0 |
| Western | 11 | 65 | 22 | 47.5 | 38.0 | 31.7 | −6.0 | 136.0 | 13.0 | 123.0 |
| Multi-country | 34 | 8 | 44.9 | 44.5 | 22.4 | 4.0 | 95.0 | 5.0 | 84.0 | |
| Multi-regional | 76 | 22 | 43.3 | 37.5 | 27.0 | 0.0 | 132.3 | 8.3 | 97.4 | |
| All studies | 376 | 102 | 42.3 | 35.0 | 38.5 | −100.0 | 350.0 | 2.0 | 110.3 | |
Notes: Table excludes information from 11 publications that report only BCRs.
Reported internal rate of return estimates by R&D orientation.
| Number of | Central tendency | Range | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Estimates | Publications | Mean | Median | Standard deviation | Minimum | Maximum | 5th Percentile | 95th Percentile | |
| Applied | 8 | 7 | 29.5 | 30.5 | 8.5 | 14.0 | 40.0 | 14.0 | 40.0 |
| Basic and Applied | 132 | 23 | 35.8 | 31.5 | 30.5 | −56.6 | 116.6 | −7.0 | 99.6 |
| Research and Extension | 224 | 68 | 43.8 | 37.7 | 36.6 | −100.0 | 188.0 | 4.3 | 122.5 |
| Extension | 9 | 5 | 95.9 | 86.0 | 103.8 | 7.0 | 350.0 | 7.0 | 350.0 |
| Other | 3 | 3 | 89.7 | 88.0 | 67.3 | 44.0 | 167.0 | 44.0 | 167.0 |
| All studies | 376 | 102 | 42.3 | 35.0 | 38.5 | −100.0 | 350.0 | 2.0 | 110.3 |
Notes: “Other” includes IRR evaluations that fall outside the categories identified in this table.
Reported internal rate of return estimates by commodity focus.
| Number of | Central tendency | Range | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Estimates | Publications | Mean | Median | Standard deviation | Minimum | Maximum | 5th Percentile | 95th Percentile | |
| Crop total | 329 | 84 | 42.8 | 35.1 | 38.6 | −100.0 | 350.0 | 4.0 | 106.2 |
| Cereals | 211 | 45 | 41.7 | 35.0 | 34.9 | −100.0 | 135.0 | 4.0 | 106.2 |
| Maize | 93 | 20 | 48.6 | 43.0 | 42.0 | −100.0 | 135.0 | −22.8 | 113.9 |
| Millet and Sorghum | 62 | 13 | 33.5 | 24.1 | 28.9 | −2.3 | 122.5 | 5.0 | 95.0 |
| Rice | 17 | 4 | 59.7 | 74.8 | 31.9 | 17.9 | 102.0 | 17.9 | 102.0 |
| Wheat | 30 | 8 | 30.0 | 24.0 | 15.2 | 3.0 | 57.0 | 7.0 | 54.0 |
| Oil crops | 24 | 5 | 26.3 | 25.7 | 18.2 | −12.3 | 59.0 | −3.4 | 50.0 |
| Pulses | 20 | 10 | 46.8 | 42.4 | 35.9 | 4.7 | 132.3 | 6.5 | 113.6 |
| Other crops | 29 | 12 | 37.7 | 33.6 | 41.9 | −14.3 | 188.0 | −7.4 | 119.0 |
| Livestock total | 14 | 6 | 36.9 | 39.5 | 16.6 | −2.0 | 55.0 | −2.0 | 55.0 |
| All agriculture | 25 | 7 | 44.9 | 39.0 | 49.8 | −12.0 | 170.0 | −7.0 | 145.0 |
| All studies | 376 | 102 | 42.3 | 35.0 | 38.5 | −100.0 | 350.0 | 2.0 | 110.3 |
Notes: Studies grouped according to FAO commodity classification standards at www.fao.org/waicent/faoinfo/economic/faodef/faodefe.htm; Cereals include barley, maize, millet, rice, sorghum, sorghum/millet and wheat; Fruit, Vegetables & Nuts include apple, banana, beans, cashew nuts, chilies, citrus, cole crops, cucurbit, fruit/nut, guava, leafy vegetables, mango, melon, onion, pineapple, plantain, stone fruits, and tomato; Poultry include poultry; Other Livestock include beef, dairy, dairy and beef, goat, sheep, sheep/goats, buffalo, cattle, other livestock, pork and swine; Natural Resources include forestry and natural resources; All Agriculture include all agriculture.
Fig. 6The African geography of the returns to research evidence. Notes: Panel a displays the number of IRR estimates per country for the period 1975–2014. The shading indicates the range within which the median IRR for each country falls. The horizontal bar within the box and whiskers plots in Panel b indicates the median, the lower and upper ends of each box the 25th and 75th percentile respectively, with the lower and upper ends of the whiskers being the 10th and 90th percentile respectively.