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

Author

Listed:
  • 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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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P158.pdf
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    References listed on IDEAS

    as
    1. Anne-Sophie Robilliard & Sherman Robinson, 2003. "Reconciling Household Surveys and National Accounts Data Using a Cross Entropy Estimation Method," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 395-406, September.
    2. Dorothée Boccanfuso & Luc Savard, 2007. "Poverty and Inequality Impact Analysis Regarding Cotton Subsidies: A Mali-based CGE Micro-accounting Approach," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(4), pages 629-659, August.
    3. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "Argentine Agricultural Policy in a Multiple-Output, Multiple- Input Framework," Others 0501002, EconWPA.
    4. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    5. David Abler & Adrián Rodríguez & James Shortle, 1999. "Parameter Uncertainty in CGE Modeling of the Environmental Impacts of Economic Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 75-94, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    cotton; subsidies; Mali; general equilibrium.;

    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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