Posted By John Paul Nkwain on Nov 28, 2016 | 0 comments There has been a general global shift towards the Export Led Growth (ELG) strategy in recent years.  Export-led growth (ELG) is an economic development strategy in which export and foreign trade in general play a central role in a country’s economic growth and development. This change has been due to the actual and potential economic benefits this strategy accords to both developing and developed countries alike.   This is true because export growth is said to result in increased output, employment and consumption, all of which lead to an increase in the demand for a country’s output. In fact, some of Africa’s principal exports revenues are generated from crude petroleum (32%), agriculture (cocoa (16%), coffee (12%), timber, bananas, cotton, and natural rubber); and wood and forest products (11%).   The export sector plays a crucial role in the growth performance of a country’s economy. In addition to increase in GDP margin, it generates the much needed foreign exchange earning that is essentially used to finance the imports of the country. Such a buoyant export sector also enlarges the domestic market so that firms achieve economies of scale and thus lower unit costs.  This may be expected because an export sector allows a country to trade along its lines of comparative advantage, specializing not only in commodities that use its abundant factors intensively, but also where it’s per unit costs are lower.   ELG strategy normally leads to efficient resource allocation and exposure to international competition which forces firms to adopt modern technology and produce quality products that meet the demands of sophisticated consumers in international markets.  These benefits of the ELG strategy have led, not only to the adoption of this strategy by many countries, but also to the emergence of many studies to test the empirical validity of the hypothesis.   CONTEXTUAL ANALYSIS The Sub-Saharan economy is essentially agricultural based with about 70 per cent of the population employed directly in this sector and highly dependent on earnings of fragmented household agricultural activities. This agrarian and agricultural economy, dominate the export basket. Together with foreign aid and grants, most countries in Sub Saharan Africa use the foreign exchange generated from the export of primary agricultural products to import almost all of its intermediate inputs, fuel and capital goods, which...