The Impact of Agricultural Trade on Economic Growth in North Africa: Econometric Analysis by Static Gravity Model

The contribution of this paper is investigating the influence of agricultural exports and agricultural imports on economic growth in North Africa Countries since it’s never been processed before. To endeavor this purpose annual data was collected for the period 1982 – 2016 and was tested by using correlation analysis and the static gravity model. Empirical analyses show that agricultural trade has a positive correlation with gross domestic product, but it appears that agricultural exports and gross domestic product have a weak correlation. The static gravity model estimation shows that agricultural exports have a positive on economic growth. However, agricultural imports have not any effect on economic growth. These results appear that agricultural exports are a fountain of economic growth in North Africa Countries. For this reason, it is very important to refine agricultural investment, and create more dynamic agricultural trade openness policies