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IFAD RESEARCH SERIES 40 - Local-economy impacts of cash crop promotion

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  • Taylor, J. Edward
  • Whitney, Edward
  • Zhu, Heng

Abstract

A number of studies have examined the direct impacts of cash crop production on producer households. This is the first to quantify the general equilibrium impacts of introducing a new cash crop into a poor isolated economy, including impacts on environmentally sensitive fishing activities. We find that the introduction of oil palm production explains the striking growth in income in Uganda’s Ssese Islands, including large-scale production spillovers to non-palm sectors, as well as a significant reduction in pressure on the Lake Victoria fishery. It appears that oil palm development, via a project that connected a commercial aggregator with small-scale farmers, enabled an economy at a low-level equilibrium to transition to a higher equilibrium state, with positive spillovers across households as well as across production sectors. Econometric evidence confirms results from simulations using an island-wide general equilibrium model parameterized from new micro survey data.

Suggested Citation

  • Taylor, J. Edward & Whitney, Edward & Zhu, Heng, 2019. "IFAD RESEARCH SERIES 40 - Local-economy impacts of cash crop promotion," IFAD Research Series 293827, International Fund for Agricultural Development (IFAD).
    • Handle: RePEc:ags:unadrs:293827
    DOI: 10.22004/ag.econ.293827
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    Cited by:

    1. Mateusz Filipski & Anubhab Gupta & Justin Kagin & Arif Husain & Alejandro Grinspun & Oscar Maria Caccavale & Silvio Daidone & Valerio Giuffrida & Friederike Greb & Joseph Hooker & Susanna Sandström & , 2022. "A local general‐equilibrium emergency response modeling approach for sub‐Saharan Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 72-89, January.
    2. repec:ags:aaea22:335741 is not listed on IDEAS

    More about this item

    Keywords

    Crop Production/Industries; Food Security and Poverty;

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