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Agricultural growth, poverty, and nutrition in Tanzania:

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  • Pauw, Karl
  • Thurlow, James

Abstract

Rapid economic growth has failed to significantly improve poverty and nutrition outcomes in Tanzania. This raises concerns over a decoupling of growth, poverty, and nutrition. We link recent production trends to household incomes using a regionalized, dynamic computable general equilibrium and microsimulation model. Results indicate that the structure of economic growth—not the level—is currently constraining the rate of poverty reduction in Tanzania. Most importantly, agricultural growth trends have been driven by larger-scale farmers and by crops grown in only a few regions of the country. The slow expansion of food crops and livestock also explains the weak relationship between agricultural growth and nutrition outcomes. Additional model simulations find that accelerating agricultural growth, particularly in maize, greatly strengthens the growth–poverty relationship and enhances households' caloric availability. We conclude that low productivity, market constraints (including downstream agroprocessing), and barriers to import substitution for major food crops are among the more binding constraints to reducing poverty and improving nutrition in Tanzania.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 947.

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Date of creation: 2010
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Handle: RePEc:fpr:ifprid:947

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Keywords: economic growth; Poverty; Nutrition; household incomes; Computable general equilibrium (CGE) modeling; Agricultural growth; Microsimulation model; livestock; Food crops; low productivity; market constraints; Development strategies;

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Citations

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Cited by:
  1. Wagstaff, Adam & Eozenou, Patrick Hoang-Vu, 2014. "CATA meets IMPOV: a unified approach to measuring financial protection in health," Policy Research Working Paper Series 6861, The World Bank.
  2. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government Expenditures, Social Outcomes, and Marginal Productivity of Agricultural Inputs: A Case Study for Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126663, International Association of Agricultural Economists.
  3. 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.
  4. Diao, Xinshen & Kennedy, Adam & Mabiso, Athur & Pradesha, Angga, 2013. "Economywide impact of maize export bans on agricultural growth and household welfare in Tanzania: A Dynamic Computable General Equilibrium Model Analysis:," IFPRI discussion papers 1287, International Food Policy Research Institute (IFPRI).
  5. Arndt, Channing & Farmer, William & Strzepek, Kenneth & Thurlow, James, 2012. "Climate change, agriculture and food security in Tanzania," Policy Research Working Paper Series 6188, The World Bank.
  6. Luca Tiberti & Marco Tiberti, 2012. "Rural Policies and Poverty in Tanzania: an Agricultural Household Model-Based Assessment," Cahiers de recherche 1229, CIRPEE.
  7. Hichaambwa, Munguzwe & Jayne, T. S., 2014. "Poverty Reduction Potential of Increasing Smallholder Access to Land," Food Security Collaborative Working Papers 171873, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  8. Holden, Stein, 2013. "Input subsidies and demand for improved maize: Relative prices and household heterogeneity matter!," CLTS Working Papers 6/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  9. Akbar, Muhammad & Jamil, Faisal, 2012. "Monetary and fiscal policies' effect on agricultural growth: GMM estimation and simulation analysis," Economic Modelling, Elsevier, vol. 29(5), pages 1909-1920.
  10. Ecker, Olivier & Mabiso, Athur & Kennedy, Adam & Diao, Xinshen 22905, 2011. "Making agriculture pro-nutrition: Opportunities in Tanzania," IFPRI discussion papers 1124, International Food Policy Research Institute (IFPRI).

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