@article{Mabeta:243450,
      recid = {243450},
      author = {Mabeta, Joshua},
      title = {Determinants of Non-Traditional Agricultural Exports  Growth in Zambia: A Case of Cotton and Tobacco},
      address = {2015-12},
      number = {634-2016-41472},
      pages = {83},
      year = {2015},
      note = {A Thesis Submitted to the Graduate School in Partial  Fulfilment of the Requirements for the Award of the Master  of Science Degree in Agricultural and Applied Economics of  Egerton University. Advisors: Dr. Hillary Bett (PhD) and  Dr. Symon Kiprop (PhD)},
      abstract = {Exports are a vital component of a nation’s balance of  payments as they are source of foreign exchange and  economic growth. Much of the economic growth in Zambia has  been driven by copper exports, which have suffered from  external shocks such as plummeting prices on the world  market. It is against this background that the Government  of the Republic of Zambia (GRZ) has devised a number of  measures to promote export diversification to  non-traditional exports with a view to reducing heavy  dependency on copper and stabilise foreign exchange  earnings. The non-traditional exports have recorded growth  averaging about 30 percent during the period. However, the  key determinants of the growth of the non-traditional  exports are unknown. This study therefore endeavored to  determine factors that affect the growth of two major  non-traditional exports in Zambia; Cotton and Tobacco. The  study employed annual time series data that spans a period  of 34 years from 1980 to 2013. The Auto-Regressive  Distributed Lagged (ARDL) model approach to co-integration  revealed that cotton and tobacco exports are co-integrated  with foreign direct investment, real effective exchange  rate, real Gross Domestic Product (GDP) of trade partners,  real interest rate and world price. The ARDL analysis  revealed that cotton exports are affected by the real  interest rate, real effective exchange rate, world price  and the real income of the trading partner in the  short-run. In the long-run, cotton exports are affected by  real interest rate, real effective exchange rate and real  GDP. Tobacco exports are significantly affected by real  effective exchange rate, real income of the trading partner  and foreign direct investment in the short-run while only  real effective exchange rate and the real income of the  trading partner affect the growth of tobacco exports in the  long-run. Granger causality tests revealed that cotton and  tobacco exports granger cause agricultural share of GDP.  Overall, both exports are highly elastic to exchange rate  movements and the importer’s GDP. There is need for  government to maintain a stable exchange rate and exploit  available markets through increased participation in  regional integration.},
      url = {http://ageconsearch.umn.edu/record/243450},
      doi = {https://doi.org/10.22004/ag.econ.243450},
}