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The sequencing of agricultural market reforms in Malawi

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  • Kherallah, Mylène
  • Kumaresan, Govindan

Abstract

The paper analyzes the welfare impacts of alternative sequencing scenarios of agricultural market reforms in Malawi using a profit maximization approach. The simulation results show that, contrary to the sequencing path adopted in the 1980's, Malawi's Government should have liberalized the maize sector first, followed by the groundnut export sector, and once a supply response was generated, input subsidies could have been phased out, without generating a negative impact on producers' welfare and food security.

Suggested Citation

  • Kherallah, Mylène & Kumaresan, Govindan, 1997. "The sequencing of agricultural market reforms in Malawi," MTID discussion papers 13, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:mtiddp:13
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    File URL: http://www.ifpri.org/publication/sequencing-agricultural-market-reforms-malawi
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    References listed on IDEAS

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    1. Brunner, Karl & Meltzer, Allan H., 1982. "Economic policy in a world of change," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 17(1), pages 1-6, January.
    2. Kumaresan Govindan & Suresh Chandra Babu, 2001. "Supply response under market liberalisation: A case study of Malawian agriculture," Development Southern Africa, Taylor & Francis Journals, vol. 18(1), pages 93-106.
    3. David Booth, 1991. "Timing and Sequencing in Agricultural Policy Reform: Tanzania," Development Policy Review, Overseas Development Institute, vol. 9(4), pages 353-380, December.
    4. Ahmed, Raisuddin, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, Blackwell, vol. 12(2), pages 115-128, August.
    5. Bautista, Romeo M., 1986. "Domestic price distortions and agricultural income in developing countries," Journal of Development Economics, Elsevier, vol. 23(1), pages 19-39, September.
    6. Raisuddin Ahmed, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, International Association of Agricultural Economists, vol. 12(2), pages 115-128, April.
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    Cited by:

    1. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).

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