Ripple effect, driving branch, and economic development: Case of the agro-food industry in Côte d’Ivoire

Abstract

In Côte d’Ivoire, agricultural development has been made possible by the Government strategy to support it through an industrialization-based policy. However, the agricultural sector is still facing many difficulties, despite significant investment efforts undertaken to turn the country into a significant agricultural and agro-food industry (AFI) products exporter on the international market. This study evaluated the effectiveness of the driving role of AFI branches in the Ivorian economy. We used Leontief’s model, coupled with Diamond’s model and Rasmussen’s indices, to assess the ripple effects, and identify the driving branch in the Ivorian economy. Data used are derived from the InputOutput Table (IOT) of the 2018 National Accounts produced by the Government and aggregated into 21 branches or subsectors. Our study showed that there is no outstanding driving branch in the economy. However, some branches are close to compliance with driving branch status. For a driving sector to emerge, the Government should invest in priority order in the following branches: Grain Processing and Starchy Product Manufacturing (GPSPM), Cocoa & Coffee Processing (CCP), Oilseed Industry (OI), Dairy Industry and Fruit & Vegetable Industry (DIFVI), Beverage Industry (BI), Tobacco Industry (TI). And currently, the country’s development strategy should be based primarily on these branches, because they are able to improve the effectiveness and efficiency of production system in the Agro-Food Industry (AFI) and, by extension, the economy.