A regional multiplier approach to estimating the impact of cash transfers: The case of cash aid in rural Malawi
AbstractThis paper analyses the impact on the local economy of an emergency cash transfer programme in rural Malawi. The results are of interest given the growing use of cash transfers as development aid as well as the increasing popularity of such transfers as a form of social protection across Sub-Saharan Africa. Using a form of social accounting matrix, we find that there are widespread benefits for regional economy as a whole (with multiplier estimates of 2.02 to 2.45) and for certain groups in particular. Small farmers and small businesses gain particular advantage as this is where poorer households’ purchases are focused; education and health also benefit. Such payments can also help to support the regional economy during the most “lean” periods of the year.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3724.
Date of creation: Jun 2007
Date of revision:
Rural Economic Development; Cash Transfers; Income Multiplier; Poverty; Malawi; Africa;
Find related papers by JEL classification:
- D19 - Microeconomics - - Household Behavior - - - Other
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-06-30 (Africa)
- NEP-ALL-2007-06-30 (All new papers)
- NEP-DEV-2007-06-30 (Development)
- NEP-GEO-2007-06-30 (Economic Geography)
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