Decomposed Effects of Agricultural Policies: A Social Accounting Matrix Approach in Burkina Faso

This paper analyzed the effects of an increase in rice, maize, poultry and cattle demand in Burkina Faso. A SAM of Burkina Faso was used and the technique of effects decomposition developed. The findings clearly show that maize records more effects in terms of income redistribution to households than rice. In contrast, the effects are more important for traded rice; payment to capital is higher than payment to labor in the case of an increase in maize demand. Poultry has a greater potential compared to cattle; it records larger effects in terms of income redistribution to households and factor payment. Recommendations include the implementation of policies that promote village poultry (a relatively low investment, easy gain and short-term payback activity), maize (which can be cropped all year round) and rice in order to better fight poverty, promote inclusive growth, create permanent rural employment and contribute to food security.