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Globalization and Poverty in Senegal: A Worst Case Scenario?

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

Abstract

There is no consensus about how globalization –trade and foreign investments – affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalization and poverty by analyzing 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, full vertical integration and complete exclusion of smallholder suppliers. We analyze and quantify income and poverty effects under these “worst-case conditions” and find significant positive welfare impacts through employment creation and labor market participation.

Suggested Citation

  • Maertens, Miet & Colen, Liesbeth & Swinnen, Johan F.M., 2009. "Globalization and Poverty in Senegal: A Worst Case Scenario?," 2009 Conference, August 16-22, 2009, Beijing, China 51668, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:51668
    DOI: 10.22004/ag.econ.51668
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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Food Security and Poverty; International Relations/Trade;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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