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Globalisation and poverty in Senegal: a worst case scenario?

  • Miet Maertens
  • Liesbeth Colen
  • Johan F. M. Swinnen

There is no consensus about how globalisation – trade and foreign investments – affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalisation and poverty by analysing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a ‘worst-case scenario’. Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation and vertical integration and complete exclusion of smallholder suppliers. We analyse and quantify income and poverty effects under these ‘worst-case conditions’ and find significant positive welfare impacts through employment creation and labour market participation. , Oxford University Press.

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Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 38 (2011)
Issue (Month): 1 (March)
Pages: 31-54

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Handle: RePEc:oup:erevae:v:38:y:2011:i:1:p:31-54
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