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Evaluating the Impact of Land Redistribution: A CGE Microsimulation Application to Zimbabwe

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  • Margaret Chitiga

    ()
    (Department of Economics, University of Pretoria)

  • Ramos Mabugu

Abstract

Zimbabwe has recently gone through a widely criticised land reform process. The country has suffered immensely as a result of this badly orchestrated reform process. Yet land reform can potentially increase average incomes, improve income distribution and as a consequence reduce poverty. This paper presents a counterfactual picture of what could have happened had land reform been handled differently. The paper uses a computable general equilibrium (CGE) model coupled with a microsimulation model in order to quantify the impact of land redistribution in terms of poverty, inequality and production. This is one of the first attempts to apply such an approach to the study of the impact of land reform on poverty and distribution in the context of an African country. The results for the land reform simulations show that the reform could have had the potential of generating substantial reductions in poverty and inequality in the rural areas. The richer households, however, would have seen a slight reduction in their welfare. The aggregate gains and the distributional effects could have been reinforced if the new resettled farmers had been able to maintain a high intensity of production. What underpin these positive outcomes are the complementary adjustments in the fiscal deficit and external balance, elements that were generally lacking from the way ZimbabweÕs land reform was actually executed. These results tend to suggest that well planned and executed land reforms can still play an important role in reducing poverty and inequality.

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Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200609.

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Length: 18 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:pre:wpaper:200609

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Cited by:
  1. Bangwayo-Skeete, Prosper F. & Bezabih, Mintewab & Zikhali, Precious, 0. "Are Zimbabwe’s Fast Track Land Reform Farms more Technically Efficient than Communal Farms?," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 49.
  2. Zikhali, Precious, 2008. "Fast Track Land Reform and Agricultural Productivity in Zimbabwe," Discussion Papers dp-08-30-efd, Resources For the Future.
  3. Zikhali, Precious, 2008. "Fast Track Land Reform and Agricultural Productivity in Zimbabwe," Working Papers in Economics 322, University of Gothenburg, Department of Economics.
  4. Bezabih, Mintewab & Chambwera, Muyeye & Stage, Jesper, 2010. "Climate Change, Total Factor Productivity, and the Tanzanian Economy: A Computable General Equilibrium Analysis," Discussion Papers dp-10-14-efd, Resources For the Future.
  5. Juana, James S. & Strzepek, Kenneth M. & Kirsten, Johann F., 2008. "Households’ welfare analyses of the impact of global change on water resources in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), September.
  6. Frank Barry, Patrick Honohan and Tara McIndoe, Trinity College Dublin, 2009. "Postcolonial Ireland And Zimbabwe: Stagnation Before Convergence," The Institute for International Integration Studies Discussion Paper Series iiisdp291, IIIS.

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