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Globalization and Poverty in Senegal: A Worst Case Scenario?

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Author Info
Miet Maertens
Liesbeth Colen
Johan F.M. Swinnen

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Abstract

There is no consensus about how globalization –trade and foreign investments ?affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalization and poverty by analyzing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a “worst-case scenario? Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation and vertical integration and complete exclusion of smallholder suppliers. We analyze and quantify income and poverty effects under these “worst-case conditions?and find significant positive welfare impacts through employment creation and labor market participation.

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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 21708.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:21708

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Related research
Keywords: trade; FDI; poverty; vertical coordination; modern supply chains;

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Find related papers by JEL classification:
F2 - International Economics - - International Factor Movements and International Business
J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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