Export of agricultural products and economic growth in Madagascar

This paper examines the impact of agriculture, especially coffee, vanilla, and clove exports on economic growth of Madagascar using time series secondary data covering 1990-2017. The study used Johansen co-integration and vector error correction model approach to estimate the long run and short run impact. The results showed that agricultural exports have short run mixed result on economic growth in Madagascar. Coffee and vanilla export has a positive effect on economic growth in the long run and in the short run. Though, clove export has also a positive long run effect on economic growth, it has a negative impact in the short run. These results will help the policy makers and investors in Madagascar for the decision making since results reveal increase export of agriculture can increase in GDP.