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Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model

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  • Fousseini Traoré

    ()
    (International Food Policy Research Institute)

Abstract

The impact of the United States' and the European Union's subsidies on world cotton price has been an important subject in recent years. This paper examines the impact that the removal of these subsidies would have on Malian economy (GDP, public accounts, and households' income). The issue is addressed with a multimarket-computable general equilibrium model detailing the Malian cotton sector. The results show a positive impact on GDP as well as on households and government incomes. These results are robust to systematic sensitivity analysis taking into account parameter uncertainty.

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File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P158.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 32 (2012)
Issue (Month): 2 ()
Pages: 1640-1652

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Handle: RePEc:ebl:ecbull:eb-11-00113

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Keywords: cotton; subsidies; Mali; general equilibrium.;

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  1. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "Argentine Agricultural Policy in a Multiple-Output, Multiple- Input Framework," Others 0501002, EconWPA.
  2. Anne-Sophie Robilliard & Sherman Robinson, 2003. "Reconciling Household Surveys and National Accounts Data Using a Cross Entropy Estimation Method," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 395-406, 09.
  3. David Abler & Adrián Rodríguez & James Shortle, 1999. "Parameter Uncertainty in CGE Modeling of the Environmental Impacts of Economic Policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 75-94, July.
  4. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI).
  5. Dorothée Boccanfuso & Luc Savard, 2007. "Poverty and Inequality Impact Analysis Regarding Cotton Subsidies: A Mali-based CGE Micro-accounting Approach," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(4), pages 629-659, August.
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