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Growth Linkages, Price Effects and Income Distribution in Sub-Saharan Africa

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  • Paul Dorosh
  • Steven Haggblade

Abstract

This paper measures economic linkages emanating from investment-led growth in eight different African countries with widely varying economic structures. To explore the importance of price effects in estimating these linkages, the paper employs two different methodologies for measuring the linkages, a fixed-price semi-input--output (SIO) model as well as a fully price-endogenous computable general equilibrium model (CGE). Regardless of the methodology used, indirect effects prove to be large. On average -- across countries and sectors -- inclusion of growth linkages nearly doubles estimated national income growth following an initial investment-led shock. Sectorally, investments in agriculture generate the largest impact on the poor. Copyright 2003, Oxford University Press.

Suggested Citation

  • Paul Dorosh & Steven Haggblade, 2003. "Growth Linkages, Price Effects and Income Distribution in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(2), pages 207-235, June.
  • Handle: RePEc:oup:jafrec:v:12:y:2003:i:2:p:207-235
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    Cited by:

    1. Mateusz J. Filipski & J. Edward Taylor & Karen E. Thome & Benjamin Davis, 2015. "Effects of treatment beyond the treated: a general equilibrium impact evaluation of Lesotho's cash grants program," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 227-243, March.
    2. Paul Dorosh & Muhammad Khan Niazi & Hina Nazli, 2003. "Distributional Impacts of Agricultural Growth in Pakistan: A Multiplier Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(3), pages 249-275.
    3. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    4. Diao, Xinshen & Zhang, Yumei & Chen, Kevin Z., 2012. "The global recession and China's stimulus package: A general equilibrium assessment of country level impacts," China Economic Review, Elsevier, vol. 23(1), pages 1-17.
    5. Mellor, John W. & Dorosh, Paul A., 2010. "Agriculture and the economic transformation of Ethiopia:," ESSP working papers 10, International Food Policy Research Institute (IFPRI).
    6. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    7. Stefan Dercon & Douglas Gollin, 2014. "Agriculture in African Development: A Review of Theories and Strategies," CSAE Working Paper Series 2014-22, Centre for the Study of African Economies, University of Oxford.
    8. Diao, Xinshen & Fekadu, Belay & Haggblade, Steven & Seyoum Taffesse, Alemayehu & Wamisho, Kassu & Yu, Bingxin, 2007. "Agricultural growth linkages in Ethiopia: Estimates using fixed and flexible price models," IFPRI discussion papers 695, International Food Policy Research Institute (IFPRI).
    9. Paul A. Dorosh & John W. Mellor, 2013. "Why Agriculture Remains a Viable Means of Poverty Reduction in Sub-Saharan Africa: The Case of Ethiopia," Development Policy Review, Overseas Development Institute, vol. 31(4), pages 419-441, July.
    10. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2006. "The role of agriculture in poverty reduction an empirical perspective," Policy Research Working Paper Series 4013, The World Bank.

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