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Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model

Author

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  • Fousseini Traoré

    (International Food Policy Research Institute)

Abstract

The impact of the United States' and the European Union's subsidies on world cotton price has been an important subject in recent years. This paper examines the impact that the removal of these subsidies would have on Malian economy (GDP, public accounts, and households' income). The issue is addressed with a multimarket-computable general equilibrium model detailing the Malian cotton sector. The results show a positive impact on GDP as well as on households and government incomes. These results are robust to systematic sensitivity analysis taking into account parameter uncertainty.

Suggested Citation

  • Fousseini Traoré, 2012. "Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model," Economics Bulletin, AccessEcon, vol. 32(2), pages 1640-1652.
    • Handle: RePEc:ebl:ecbull:eb-11-00113
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    cotton; subsidies; Mali; general equilibrium.;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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