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Market opportunities for African agriculture

  • Diao, Xinshen
  • Dorosh, Paul A.
  • Rahman, Shaikh Mahfuzur

"Rapid growth in the agricultural sector is central to any strategy for slashing poverty and hunger on the African continent. Yet investments aimed at increasing agricultural productivity need to be linked to market opportunities if they are not to depress commodity prices and farm incomes. It is widely perceived that high market transaction costs, weak domestic consumer demand, and lack of export possibilities are major constraints on agricultural growth prospects for Africa. But just how severe are these constraints, and what can be done to enhance market opportunities to enable agriculture to become a more powerful engine of growth for the continent? This study addresses these questions. It concludes that non-traditional exports have the fewest constraints and remain the most profitable option for increasing export earnings.....Thus, investments in agriculture and other efforts to promote higher agricultural productivity growth need to be complemented with policies and investments to spur non-agricultural growth. More generally, investments in rural infrastructure can help to maximize positive linkage effects of agricultural growth. Agricultural growth can play a major role in increasing food supply, but sustained increases in incomes and reductions in poverty are likely to require a combination of labor-intensive growth in both agricultural and nonagricultural activities." from Authors' Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series DSGD discussion papers with number 1.

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Date of creation: 2003
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Handle: RePEc:fpr:dsgddp:1
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  1. Gabre-Madhin, Eleni Z. & Barrett, Christopher B. & Dorosh, Paul A., 2003. "Technological change and price effects in agriculture," MTID discussion papers 62, International Food Policy Research Institute (IFPRI).
  2. Diao, Xinshen & Roe, Terry & Yeldan, Erinc, 1999. "Strategic policies and growth: an applied model of R&D-driven endogenous growth," Journal of Development Economics, Elsevier, vol. 60(2), pages 343-380, December.
  3. Winnie Mitullah, 2000. "Food Safety Requirements and Food Exports from Developing Countries: The Case of Fish Exports from Kenya to the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1159-1169.
  4. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
  5. Adelman, Irma, 1984. "Beyond export-led growth," World Development, Elsevier, vol. 12(9), pages 937-949, September.
  6. Dorosh, Paul A., 2001. "Trade Liberalization and National Food Security: Rice Trade between Bangladesh and India," World Development, Elsevier, vol. 29(4), pages 673-689, April.
  7. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
  8. Adelman, Irma, 1984. "Beyond export-led growth," CUDARE Working Paper Series 309, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
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