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A Regional Multiplier Approach to Estimating the Impact of Cash Transfers on the Market: The Case of Cash Transfers in Rural Malawi

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  • Simon Davies
  • James Davey

Abstract

This article analyses the impact on the local economy of an emergency cash-transfer programme in rural Malawi. The results are of interest, given the growing use of cash transfers as development aid as well as the increasing popularity of such transfers as a form of social protection across sub-Saharan Africa. It uses a form of social accounting matrix to show that there are widespread benefits for the regional economy as a whole (with multiplier estimates of 2.02 to 2.45), especially during the most 'lean' periods of the year, and for small farmers and small businesses in particular, as this is where poorer households' purchases are focused; education and health also benefit. Copyright 2008 Blackwell Publishing Ltd.

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Bibliographic Info

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

Volume (Year): 26 (2008)
Issue (Month): 1 (01)
Pages: 91-111

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Handle: RePEc:bla:devpol:v:26:y:2008:i:1:p:91-111

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Cited by:
  1. J. Edward Taylor, 2012. "A Methodology for Local Economy-Wide Impact Evaluation (LEWIE) of Cash Transfers," Working Papers 99, International Policy Centre for Inclusive Growth.
  2. Alderman, Harold & Yemtsov, Ruslan, 2013. "How can safety nets contribute to economic growth ?," Policy Research Working Paper Series 6437, The World Bank.
  3. Stephen Devereux, 2012. "Social Protection for Enhanced Food Security in Sub-Saharan Africa," Working Papers 2012-010, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  4. Gentilini, Ugo & Omamo, Steven Were, 2011. "Social protection 2.0: Exploring issues, evidence and debates in a globalizing world," Food Policy, Elsevier, vol. 36(3), pages 329-340, June.
  5. Ronald Mendoza & Ronald, 2010. "Inclusive Crises, Exclusive Recoveries, and Policies to Prevent a Double Whammy for the Poor," Working papers 1004, UNICEF,Division of Policy and Strategy.

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