Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor
AbstractThe reduction of the existing global distortions to agricultural incentives is sometimes stated as a priority to fight poverty worldwide. But the impacts of global trade policy and domestic development policy reforms are rarely, if ever, compared. Despite technical limitations hindering rigorous comparison of the overall growth effects, also hampering cost-benefit analysis, this paper contributes at filling this gap by focusing on the comparison of the distributional poverty impacts of both types of policies. It uses the MIRAGE global computable general equilibrium –CGE- model feeding a national CGE model representing Malawi in 2007 linked to household survey to examine how different trade policy reforms by Malawi and the rest of the world would impact poverty in Malawi. The country’s recent agricultural growth history due to the Fertilizer Input Subsidy Program is replicated and compared with a more broad-based sectoral approach. The effects of accelerating growth in agriculture and downstream sectors are compared with those of integrating in the regional and multilateral markets. Non preferential trade policy reforms are found to be less favourable for poverty reduction of the poorest than regional integration or preferential integration. Faster intensification and diversification of agriculture is found to enable targeting the poorest that are less likely to be connected to international markets. Therefore, while policy reforms generating growth in general may be good for some poors, it is found that that not all policy reforms are equally good. Thus, despite the fact that trade policies could help fight poverty in Malawi, there are no substitute to development policies, and if undertaken simultaneously, their coherence should be checked thoroughly.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40948.
Date of creation: 2012
Date of revision:
Malawi; Economic Growth; Trade policy; Agricultural Policy; Poverty; Computable General Equilibrium;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-09-09 (Africa)
- NEP-AGR-2012-09-09 (Agricultural Economics)
- NEP-ALL-2012-09-09 (All new papers)
- NEP-CMP-2012-09-09 (Computational Economics)
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.:
- Antoine Bouet & Carmen Estrades & David Laborde, 2013.
"Households heterogeneity in a global CGE model: an illustration with the MIRAGE-HH (MIRAGE-HouseHolds) model,"
- Antoine Bouet & Valdete Berisha-Krasniqui & Valdete Berisha-Krasniqui & Carmen Estrades & David Laborde, 2013. "Households heterogeneity in a global CGE model: an illustration with the MIRAGE-HH (MIRAGE-HouseHolds) model," Larefi Working Papers 1301, Larefi, Université Bordeaux 4.
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005.
"Would multilateral trade reform benefit Sub-Saharan Africans?,"
Policy Research Working Paper Series
3616, The World Bank.
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 626-670, December.
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," CEPR Discussion Papers 5049, C.E.P.R. Discussion Papers.
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Centre for International Economic Studies Working Papers 2005-18, University of Adelaide, Centre for International Economic Studies.
- Pauw, Karl & Thurlow, James & van Seventer, Dirk, 2010. "Droughts and floods in Malawi," IFPRI discussion papers 962, International Food Policy Research Institute (IFPRI).
- Douillet, Mathilde, 2011. "Which trade integration scheme can best help Sub-Saharan Africa develop and export more processed agricultural goods?:," IFPRI discussion papers 1119, International Food Policy Research Institute (IFPRI).
- Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
- Jones, Chris & Morrissey, Oliver & Nelson, Doug, 2011. "Did the World Bank Drive Tariff Reforms in Eastern Africa?," World Development, Elsevier, vol. 39(3), pages 324-335, March.
- Jean-Pierre Cling & Mohamed Ali Marouani & Mireille Razafindrakoto & Anne-Sophie Robilliard & Francois Roubaud, 2009.
"The Distributive Impact of Vietnam's Accession to the WTO,"
CEPII research center, issue 118, pages 43-71.
- Cling, Jean-Pierre & Marouani, Mohamed Ali & Razafindrakoto, Mireille & Robilliard, Anne-Sophie & Roubaud, François, 2009. "The distributive impact of Vietnam’s accession to the WTO," Economics Papers from University Paris Dauphine 123456789/4321, Paris Dauphine University.
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Harrison, Ann & McLaren, John & McMillan, Margaret S., 2010.
"Recent findings on trade and inequality:,"
IFPRI discussion papers
1047, International Food Policy Research Institute (IFPRI).
- Xinshen Diao & Paul Dorosh, 2007. "Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis," Development Policy Review, Overseas Development Institute, vol. 25(3), pages 275-292, 05.
- Antoine BOUET & David LABORDE & Elisa DIENESCH & Kimberly ELLIOTT, 2010.
"The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters,"
11, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Feb 2010.
- Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
- Antoine Bouët, David Laborde Debucquet,Elisa Dienesch, and Kimberly Elliott, 2010. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Working Papers 206, Center for Global Development.
- François Bourguignon & Maurizio Bussolo & John Cockburn, 2010. "Guest Editorial - Macro-micro analytics: background, motivation, advantages and remaining challenges," International Journal of Microsimulation, Interational Microsimulation Association, vol. 3(1), pages 1-7.
- Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.
- James Thurlow & Peter Wobst, 2006. "Not All Growth is Equally Good for the Poor: The Case of Zambia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 603-625, December.
- Valenzuela, Ernesto & van der Mensbrugghe, Dominique & Anderson, Kym, 2008. "General equilibrium effects of price distortions on global markets, farm incomes and welfare," Agricultural Distortions Working Paper 48630, World Bank.
- Benin, Samuel & Thurlow, James & Diao, Xinshen & McCool, Christen & Simtowe, Franklin, 2008. "Agricultural growth and investment options for poverty reduction in Malawi:," IFPRI discussion papers 794, International Food Policy Research Institute (IFPRI).
- Diao, Xinshen & Robinson, Sherman & Thomas, Marcelle & Wobst, Peter, 2002. "Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe," TMD discussion papers 91, International Food Policy Research Institute (IFPRI).
- Stephen Devereux, 2007. "The impact of droughts and floods on food security and policy options to alleviate negative effects," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 47-58, December.
- Bouet, Antoine & Laborde, David, 2010.
"Eight Years of Doha Trade Talks: Where Do We Stand?,"
eJADE: electronic Journal of Agricultural and Development Economics,
Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 11(2).
- Antoine Bouet & David Laborde, 2010. "Eight years of Doha trade talks : where do we stand," Working Papers hal-00637589, HAL.
- Decreux, Yvan & Valin, Hugo, 2007.
"MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics,"
7284, TRADEAG - Agricultural Trade Agreements.
- Yvan Decreux & Hugo Valin, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 2007-15, CEPII research center.
- Roberta Piermartini & Patrick Low & Jurgen Richtering, 2005. "Multilateral Solutions to the Erosion of Non-Reciprocal Preferences in NAMA," Working Papers id:289, eSocialSciences.
- Minot, Nicholas & Benson, Todd, 2009. "Fertilizer subsidies in Africa: Are vouchers the answer?," Issue briefs 60, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.