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Globalization and Poverty in Senegal: A Worst Case Scenario?

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

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.

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File URL: http://purl.umn.edu/51668
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Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51668.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51668
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