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Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis

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  • Xinshen Diao
  • Paul Dorosh

Abstract

This article analyses demand constraints on agricultural growth in seven countries of East and Southern Africa using an applied general equilibrium framework. It finds that both traditional and non-traditional export crops have limited potential to raise incomes because of demand constraints (for traditional exports) or a relatively small base (for non-traditional exports). The best prospects for agriculture-led growth remain in the food sector, where domestic demand represents a large and growing market. Improvements in market efficiency and simultaneous growth in the livestock sectors can help spur demand further and avert falls in prices. Achieving rapid gains in farm incomes, however, also requires investment in rural infrastructure to reduce marketing costs, and demand- enhancing growth in the non-agricultural sector to spur demand. Copyright 2007 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Overseas Development Institute in its journal Development Policy Review.

Volume (Year): 25 (2007)
Issue (Month): 3 (05)
Pages: 275-292

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Handle: RePEc:bla:devpol:v:25:y:2007:i:3:p:275-292

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Cited by:
  1. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
  2. Olwande, John & Mathenge, Mary K., 2012. "Market Participation among Poor Rural Households in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126711, International Association of Agricultural Economists.
  3. Ehlert, Christoph R. & Mithöfer, Dagmar & Waibel, Hermann, 2014. "Worker welfare on Kenyan export vegetable farms," Food Policy, Elsevier, vol. 46(C), pages 66-73.
  4. Douillet, Mathilde, 2012. "Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor," MPRA Paper 40948, University Library of Munich, Germany.
  5. Diao, Xinshen & Fan, Shenggen & Headey, Derek & Johnson, Michael & Nin Pratt, Alejandro & Yu, Bingxin, 2008. "Accelerating Africa's food production in response to rising food prices: Impacts and requisite actions," IFPRI discussion papers 825, International Food Policy Research Institute (IFPRI).

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