IDEAS home Printed from https://ideas.repec.org/p/ags/iffp23/97552.html

Does trade liberalization enhance income growth and equity in Zimbabwe? The Role of Complementary Policies

Author

Listed:
  • Bautista, Romeo M.
  • Lofgren, Hans
  • Thomas, Marcelle

Abstract

Using an agriculture-focused CGE model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of trade liberalization in isolation and in conjunction with potentially complementary changes in fiscal and land policies. Trade policy reform alone (dismantling of import and foreign exchange controls, and reduction of import taxes to a low uniform rate) is shown to increase aggregate disposable household income significantly. However, the least income gain accrues to smallholder farm households, which account for about four-fifths of the poor in Zimbabwe, so the equity impact is unfavorable. Concurrent implementation with specific changes in government expenditure and tax policies and two alternative stylized land redistribution schemes yields differing outcomes in terms of aggregate household income growth and its distribution.

Suggested Citation

  • Bautista, Romeo M. & Lofgren, Hans & Thomas, Marcelle, 1998. "Does trade liberalization enhance income growth and equity in Zimbabwe? The Role of Complementary Policies," TMD Discussion Papers 97552, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:iffp23:97552
    DOI: 10.22004/ag.econ.97552
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/97552/files/tmdp32.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.97552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. International Monetary Fund, 1997. "Zimbabwe: Recent Economic Developments," IMF Staff Country Reports 1997/059, International Monetary Fund.
    2. Christopher Delgado & Peter Hazell & Jane Hopkins & Valerie Kelly, 1994. "Promoting Intersectoral Growth Linkages in Rural Africa Through Agricultural Technology and Policy Reform," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1166-1171.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haddad, Lawrence J. & Zeller, Manfred, 1996. "How can safety nets do more with less?: general issues with some evidence from Southern Africa," FCND discussion papers 16, International Food Policy Research Institute (IFPRI).
    2. Douillet, Mathilde, 2011. "Which trade integration scheme can best help Sub-Saharan Africa develop and export more processed agricultural goods?:," IFPRI discussion papers 1119, International Food Policy Research Institute (IFPRI).
    3. Carter, Michael R. & Barham, Bradford L., 1996. "Level playing fields and laissez faire: Postliberal development strategy in inegalitarian agrarian economies," World Development, Elsevier, vol. 24(7), pages 1133-1149, July.
    4. Castillo, G. E. & Namara, Regassa & Ravnborg, H. M. & Hanjra, M. A. & Smith, L. & Hussein, M. H. & Bene, Christopher & Cook, S. & Hirsch, D. & Polak, P. & Valee, Domitille & van Koppen, Barbara, 2007. "Reversing the flow: agricultural water management pathways for poverty reduction," Book Chapters,, International Water Management Institute.
    5. Hilson, Gavin & Laing, Tim & Hilson, Abigail & Arnall, Alex & Mondlane, Salvador, 2025. "How Does Small-Scale Mining Stabilize Rural Livelihoods in Sub-Saharan Africa? The Case of Mozambique," World Development, Elsevier, vol. 185(C).
    6. Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
    7. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general equilibrium analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
    8. Courbois, Claude & Delgado, Christopher L. & Gruhn, Peter & Hazell, P. B. R. & Hojjati, Behjat & Hopkins, Jane & Kelly , Valerie & McKenna, Anna A. & Sil, Jayashree, 1998. "Agricultural growth linkages in Sub-Saharan Africa," Research reports 107, International Food Policy Research Institute (IFPRI).
    9. Molden, David, 2008. "Water security for food security: findings of the Comprehensive Assessment for Sub-Saharan Africa. [This report draws directly from the book Water for food, water for life: a Comprehensive Assessment of Water Management in Agriculture]," IWMI Conference Proceedings 233268, International Water Management Institute.
    10. Kuyvenhoven, Arie & Ruben, Ruerd & Kruseman, Gideon, 1998. "Technology, market policies and institutional reform for sustainable land use in southern Mali," Agricultural Economics, Blackwell, vol. 19(1-2), pages 53-62, September.
    11. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    12. Abdulai, Awudu & Delgado, Christopher L., 1997. "Determinants of Time Spent in Non-Farm Employment by Farmers in Northern Ghana," 1997 Conference, August 10-16, 1997, Sacramento, California 197047, International Association of Agricultural Economists.
    13. Bautista, Romeo M. & Robinson, Sherman & El-Said, Moataz, 1999. "Alternative Industrial Development Paths for Indonesia: Sam and CGE Analyses," TMD Discussion Papers 97538, CGIAR, International Food Policy Research Institute (IFPRI).
    14. Bautista, Romeo M. & Lofgren, Hans & Thomas, Marcelle, 1998. "Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies," TMD discussion papers 32, International Food Policy Research Institute (IFPRI).
    15. Bautista, Romeo M. & Thomas, Marcelle, 1998. "Agricultural Growth Linkages In Zimbabwe: Income And Equity Effects," TMD Discussion Papers 97549, CGIAR, International Food Policy Research Institute (IFPRI).
    16. Thomas, Marcelle & Bautista, Romeo M., 1999. "A 1991 social accounting matrix (SAM) for Zimbabwe," TMD Discussion Papers 97556, CGIAR, International Food Policy Research Institute (IFPRI).
    17. Islam, Nurul, 1997. "The nonfarm sector and rural development: review of issues and evidence," 2020 vision briefs 47, International Food Policy Research Institute (IFPRI).
    18. Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics, Blackwell, vol. 23(3), pages 207-218, September.
    19. Bautista, Romeo M. & Thomas, Marcelle, 1999. "A 1991 social accounting matrix (SAM) for Zimbabwe," TMD discussion papers 36, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iffp23:97552. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.