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On the Choice of Appropriate Development Strategy: Insights Gained from CGE Modelling of the Mozambican Economy

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  • Henning Tarp
  • Jensen Finn Tarp

Abstract

This paper uses a 1997 Computable General Equilibrium (CGE) model to analyse three strategies which Mozambique can pursue in furthering a sustainable development process. They include (i) agriculture-first, (ii) agricultural-development-led-industrialisation (ADLI) and (iii) a primary-sector export-oriented strategy. ADLI dominates the two other approaches and the distributional implications of ADLI are attractive. We also find that there are important synergy effects to be reaped from balanced agricultural and agro-industrial development, and the primarysector export-oriented strategy represents a potentially significant set of complementary policies. Finally, the importance of taking structural differences among household groupings into account when formulating comprehensive pro-equity and anti-poverty development strategies is prominent. Copyright 2004, Oxford University Press.

Suggested Citation

  • Henning Tarp & Jensen Finn Tarp, 2004. "On the Choice of Appropriate Development Strategy: Insights Gained from CGE Modelling of the Mozambican Economy," Journal of African Economies, Centre for the Study of African Economies, vol. 13(3), pages 446-478, September.
    • Handle: RePEc:oup:jafrec:v:13:y:2004:i:3:p:446-478
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    Cited by:

    1. Sryneath Chhuor, 2017. "Potential roles of export orientation of Cambodia’s agriculture and agro-industry: an application of CGE analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-33, December.
    2. João Z. Carrilho & Ines A. Ferreira & Rui N. Ribeiro & Finn Tarp, 2021. "The relative neglect of agriculture in Mozambique," WIDER Working Paper Series wp-2021-135, World Institute for Development Economic Research (UNU-WIDER).
    3. Patrice Rélouendé Zidouemba, 2021. "Does agriculture possess the strong linkages necessary to drive industrialization and poverty reduction in Burkina Faso?," Economics Bulletin, AccessEcon, vol. 41(3), pages 911-928.

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