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Income Poverty Effects of Expansion and Policies in Cash Cropping Economies in Rural Mozambique: An Economy-wide Approach

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Author Info
Duncan Boughton (Department of Agricultural Economics, Michigan State University)
Rui M.S. Benfica
Abstract

Poverty is widespread in Mozambique, particularly in rural areas where the highest proportion of the population lives and work. Livelihood strategies among rural HHs in the Zambezi Valley are predominantly based on agricultural activities, but income diversification is increasingly important. Cash income from agriculture comes predominantly from tobacco and cotton production. Due to cash constraints and poor access to input and credit by farmers, and high demand from buyers to meet quality and volume requirements, contract faming is the dominant form in the organization of transactions in those cash cropping sectors. The selective nature of CF implies that not all HHs may have the chance to directly participate in these schemes; some HHs are excluded. A key question, then, is how large and widespread the indirect income effects of these schemes are, compared to the direct effects. The answer to these questions has a lot to say about the poverty reduction effects of such crops, and may generate insights about policies and programs to enhance these effects.

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Paper provided by Department of Agricultural Economics, Michigan State University in its series International Development Collaborative Working Papers with number MZ-MINAG-RR-64e.

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Date of creation: 2007
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Handle: RePEc:msu:icpwrk:mz-minag-rr-64e

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Related research
Keywords: food security food policy Mozambique marketing cash crop

Find related papers by JEL classification:
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March. [Downloadable!] (restricted)
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  6. David Tschirley & Colin Poulton & Duncan Boughton, 2006. "The Many Paths of Cotton Sector Reform in Eastern and Southern Africa: Lessons from a Decade of Experience," International Development Working Papers 88, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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  7. Tarp, Finn & Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Heltberg, Rasmus, 2002. "Facing the development challenge in Mozambique: an economywide perspective," Research reports 126, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  9. Taylor, J. Edward & Dyer, George A. & Yunez-Naude, Antonio, 2005. "Disaggregated Rural Economywide Models for Policy Analysis," World Development, Elsevier, vol. 33(10), pages 1671-1688, October. [Downloadable!] (restricted)
  10. Subramanian, Shankar & Sadoulet, Elisabeth, 1990. "The Transmission of Production Fluctuations and Technical Change in a Village Economy: A Social Accounting Matrix Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 39(1), pages 131-73, October.
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  1. Ferede Agaje T., 2008. "Growth linkages and policy effects in a village economy in Ethiopia: An analysis of interactions using a social accounting matrix (SAM) framework," Working Papers 2008007, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
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