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Groundnut Sector Liberalization in Senegal: A Multi-household CGE Analysis

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  • Dorothee Boccanfuso
  • Luc Savard

Abstract

In Senegal, the poverty reduction strategy is taking place in a context where international trade liberalization impacts the agricultural sector as a whole, and the groundnut sector in particular. Against this backdrop, we have developed a micro-simulated multiple-household computable general equilibrium model similar to the one proposed by Decaluwe et al. (1999b, How to Measure Poverty and Inequfality in General Equilibrium Framework, CREFA Working Paper No. 9920, Universite Laval, Quebec). Five simulations have been carried out in order to assess their impact on several levels—namely the macroeconomic, sector-based and household levels. The first two simulations concern tariff reforms, whereas the last three examine the external shocks resulting from a change in export prices on the world market (namely, for groundnuts and groundnut oil). The point of these simulations is to assess how the liberalization of the groundnut industry and the privatization of the Societe Nationale de Commercialisation des Oleagineux du Senegal—two major elements in the Framework Agreement—may impact households, and thus to see in what ways these economic reforms relate to poverty and income distribution. The results show that reducing the special tax on edible oils is positive in terms of poverty effects and the reduction of world prices of groundnut has relatively strong negative effects on poor households if farmers are not protected via a fixed price.

Suggested Citation

  • Dorothee Boccanfuso & Luc Savard, 2008. "Groundnut Sector Liberalization in Senegal: A Multi-household CGE Analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 36(2), pages 159-186.
  • Handle: RePEc:taf:oxdevs:v:36:y:2008:i:2:p:159-186 DOI: 10.1080/13600810802037845
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    Cited by:

    1. Boeters, Stefan & Savard, Luc, 2011. "The labour market in CGE models," ZEW Discussion Papers 11-079, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Sahlén, Linda, 2008. "The Impacts of Food- and Oil Price Shocks on the Namibian Economy: the Role of Water Scarcity," Umeå Economic Studies 758, Umeå University, Department of Economics.
    3. repec:spr:ssefpa:v:9:y:2017:i:5:d:10.1007_s12571-017-0727-6 is not listed on IDEAS
    4. Boeters, Stefan & Savard, Luc, 2011. "The labour market in CGE models," ZEW Discussion Papers 11-079, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Binjian, Binjian & Sakamoto, Hiroshi, 2013. "Market Reform and Income Distribution in China : A CGE–Microsimulation Approach," AGI Working Paper Series 2013-13, Asian Growth Research Institute.
    6. Sahlén, Linda, 2009. "Essays on Environmental and Development Economics - Public Policy, Resource Prices and Global Warming," Umeå Economic Studies 762, Umeå University, Department of Economics.
    7. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.

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