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Archives of Business Research – Vol. 13, No. 03
Publication Date: March 25, 2025
DOI:10.14738/abr.1303.18384.
da Silva, A. L. J. B., Lambert, E., & Deyganto, K. O. (2025). The Role of Technological Innovation in Economic Growth of Angola's
Agricultural Sector. Archives of Business Research, 13(03). 21-29.
Services for Science and Education – United Kingdom
The Role of Technological Innovation in Economic Growth of
Angola's Agricultural Sector
Augusto Lotti Joaquim Bié da Silva
School of Business and Economics,
Business Administration Department, Atlantic International University,
900 Fort Street Mall 905, Honolulu, Hawaii 96813. United States
Edward Lambert
School of Business and Economics,
Business Administration Department, Atlantic International University,
900 Fort Street Mall 905, Honolulu, Hawaii 96813. United States
Kanbiro Orkaido Deyganto
School of Business and Economics,
Business Administration Department, Atlantic International University,
900 Fort Street Mall 905, Honolulu, Hawaii 96813. United States
ABSTRACT
This study investigates the impact of technological innovation on economic growth
in Angola’s agricultural sector from 2005 to 2023. The research focuses on how
advancements in mechanization, irrigation systems, and improved seed varieties
have contributed to productivity and overall GDP growth. Given the importance of
agriculture in Angola’s economy, understanding the role of technology is essential
for shaping future policies and investment strategies. A quantitative research
approach was employed, using regression analysis to assess the relationship
between GDP growth and five key factors: access to technology, education and
training, financial support, government policies, and market demand. The study
relies on historical data and economic indicators, evaluating trends over nearly two
decades to establish a comprehensive understanding of technological innovation’s
role in economic development. The results indicate a strong positive correlation
between technological innovation and GDP growth in the agricultural sector.
Increased mechanization and irrigation systems significantly enhanced farm
productivity, while education and financial investment played a critical role in
facilitating technology adoption. However, challenges such as policy
inconsistencies and infrastructure limitations hindered the full potential of
technological progress. These findings suggest that targeted investments in
technology, improved education programs, and financial support are necessary to
sustain agricultural growth. Additionally, policy reforms should address existing
regulatory barriers, ensuring a stable and supportive environment for innovation.
Strengthening rural infrastructure, including roads and electricity access, would
further enhance the effectiveness of technological advancements. For Angola to
maximize the benefits of technological innovation in agriculture, a multi-faceted
approach is needed. Policymakers should focus on sustained investment, consistent
regulations, and rural development initiatives. By addressing these key areas,
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Archives of Business Research (ABR) Vol. 13, Issue 03, March-2025
Services for Science and Education – United Kingdom
Angola can improve agricultural productivity, increase food security, and drive
long-term economic growth.
Keywords: Technological Innovation, Economic Growth, Agriculture, GDP, Angola
INTRODUCTION
Technological innovation is a major driver of economic growth, particularly in developing
economies where agricultural transformation is critical. According to Romer (2010),
technological progress enhances productivity, reduces costs, and fosters economic expansion.
In Sub-Saharan Africa, countries that have invested in mechanization, improved seed varieties,
and digital farming have experienced significant improvements in agricultural output and rural
development (World Bank, 2019). However, despite the clear benefits of innovation in
agriculture, many developing nations, including Angola, continue to struggle with slow
adoption rates.
Angola, a resource-rich country in Southern Africa, has an underdeveloped agricultural sector
that remains heavily reliant on traditional farming methods. Agriculture plays a crucial role in
the nation’s economy, yet low productivity levels persist due to a lack of modern technology. In
response, the Angolan government has prioritized agricultural modernization as part of its
economic diversification strategy (Angola National Development Plan, 2018-2022). The plan
aims to enhance productivity through investments in mechanization, irrigation systems, and
digital tools, but the real impact of these innovations remains largely underexplored.
One of the primary barriers to technological adoption in Angola's agriculture sector is limited
access to mechanized farming. According to the African Development Bank (2021), only 15%
of farmers in the country use modern equipment, a significantly lower rate compared to other
emerging economies. The lack of mechanization has led to persistent inefficiencies, reduced
output, and an overreliance on subsistence farming. Furthermore, the slow integration of
modern farming techniques limits Angola’s ability to compete in regional and international
agricultural markets.
Insufficient financial investment and credit access further constrain the adoption of agricultural
technologies. Many smallholder farmers struggle to obtain loans or subsidies needed to invest
in advanced equipment, irrigation systems, or improved seed varieties. Without adequate
financial support, these farmers remain trapped in low-yield cycles, preventing large-scale
agricultural transformation. Moreover, inconsistent government policies and weak rural
infrastructure create additional obstacles to modernization. Poor road networks, limited
electricity supply, and bureaucratic inefficiencies make it difficult for farmers to access
technology and market opportunities effectively.
This study seeks to fill the existing research gap by quantitatively assessing how technological
advancements influence Angola’s agricultural GDP. By examining key factors such as
mechanization, education and training, financial support, government policies, and market
demand, this research provides valuable insights into the potential of technological innovation
to drive economic growth.
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da Silva, A. L. J. B., Lambert, E., & Deyganto, K. O. (2025). The Role of Technological Innovation in Economic Growth of Angola's Agricultural Sector.
Archives of Business Research, 13(03). 21-29.
URL: http://doi.org/10.14738/abr.1303.18384
The findings will help policymakers, investors, and stakeholders implement targeted
interventions that foster sustainable agricultural development and economic diversification in
Angola.
Research Hypotheses
1. H1: Increased access to technology has a significant positive impact on GDP growth in
Angola’s agricultural sector.
2. H2: Higher levels of education and training enhance the adoption of technological
innovations, leading to increased agricultural productivity.
3. H3: Greater financial support and investment significantly contribute to the
implementation of technological advancements in agriculture.
4. H4: Favorable government policies and incentives promote technological adoption and
improve agricultural sector performance.
5. H5: Higher market demand and consumer preferences drive agricultural production
and positively influence GDP growth.
REVIEW OF LITERATURE
Theoretical Review
Technological innovation plays a fundamental role in economic growth, as explained by
Schumpeter’s (1934) theory of innovation, which highlights the importance of new
technologies in driving productivity and economic expansion. The Solow-Swan growth model
(Solow, 1956) further emphasizes technological progress as a key determinant of long-term
economic growth, beyond labor and capital inputs. In the context of agriculture, Romer’s (1990)
endogenous growth theory suggests that knowledge accumulation and technological
advancements—such as mechanization, irrigation, and biotechnology—enhance productivity
and contribute to sustainable economic development. Furthermore, diffusion of innovation
theory (Rogers, 1962) explains how new agricultural technologies spread through society,
influencing adoption rates and their impact on economic growth. These theoretical
perspectives provide a framework for understanding how technological innovation fosters
efficiency, reduces costs, and enhances output in Angola’s agricultural sector.
Empirical Review
Empirical studies have consistently shown a positive relationship between technological
innovation and economic growth in agriculture. For instance, Alston et al. (2010) found that
investments in agricultural research and development (R&D) significantly increased
productivity in developing economies. A study by Evenson and Gollin (2003) demonstrated that
improved seed varieties and mechanization contributed to higher agricultural output and rural
economic growth. Similarly, Fuglie (2018) analyzed global agricultural productivity trends and
concluded that technological advancements were the primary drivers of efficiency gains. In the
African context, Mose, Kabuage, and Karanja (2019) reported that access to modern farming
technologies significantly boosted farm yields and incomes in Kenya. Research on Angola’s
agricultural sector, such as Bationo et al. (2021), highlights the role of irrigation systems and
mechanization in increasing crop production. These studies support the argument that
technological innovation is essential for economic growth, reinforcing the need for targeted
investments and policy interventions in Angola’s agricultural sector.