IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/156142.html
   My bibliography  Save this article

Modelling The Lesotho Economy: A Social Accounting Matrix Approach

Author

Listed:
  • Bahta, Yonas Tesfamariam

Abstract

Using a 2000 Social Accounting Matrix (SAM) for Lesotho, this paper investigates the key features of the Lesotho economy and the role played by the agricultural sector. A novel feature of the SAM is the elaborate disaggregation of the agricultural sector into finer subcategories. The fundamental importance of agriculture development emerges clearly from a descriptive review and from SAM multiplier analysis. It is dominant with respect to income generation and value of production. It contributes 23 percent of gross domestic product and 12 percent of the total value of production. It employs 26 percent of labour and 24 percent of capital. The construction sector has the highest open SAM output multiplier (1,588) and SAM output multiplier (1.767). The household multipliers indicate that in the rural and urban areas, agriculture and mining respectively generate most household income. Agriculture has the highest employment coefficient. Agriculture and mining sectors also have the largest employment multipliers in Lesotho.

Suggested Citation

  • Bahta, Yonas Tesfamariam, 1. "Modelling The Lesotho Economy: A Social Accounting Matrix Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1.
  • Handle: RePEc:ags:ijfaec:156142
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/156142
    Download Restriction: no

    References listed on IDEAS

    as
    1. Arndt, Channing & Jensen, Henning Tarp & Tarp, Finn, 2000. "Structural Characteristics of the Economy of Mozambique: A SAM-Based Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 292-306, October.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:156142. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/iiaaktr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.