Analysis of total factors productivity growth of agricultural sector in selected member countries of the Organization of the Islamic Conference

The importance of productivity growth (PG) in the agricultural sector in the long-term economic growth of countries on the one hand and the high share of the agricultural sector in the economy of Islamic countries, on the other hand, shows the importance of analyzing the PG in Islamic countries. This article aims to analyze the agricultural total factors productivity (ATFP) of Islamic countries from 1995 to 2019. Solow's growth model and panel data technique were used to calculate the ATFP growth. Based on the results, the Cobb-Douglas production function was chosen as the best functional form. Also, the variables of fertilizer, cultivated area, capital, and employment have a positive and significant effect on the value added. In addition, TFP will be examined in 3 sub-groups to illustrate the developments within the OIC better. The first, second and third groups are classified as the Least Developed, the middle-income and oil-exporting countries, respectively. ATFP of the first, second, and third groups are -4%, 8%, and 0.6%, respectively. The negative PG of the LDC indicates that this group isn’t in a sustainable development pathway. Also, the OE has lower productivity rather than MI because of the focus on oil export. Besides, ATFP of Togo, Niger, Cameron, Egypt, Jordan, Iran, and the U.A.E. is negative which illustrates the unsustainable development of these countries. All in all, technological innovation is should be considered to promote sustainable development of OIC countries. In addition, to improve agricultural productivity, the government should be enhanced investment in human capital.