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Exploring growth linkages and market opportunities for agriculture in Southern Africa

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  • Nin-Pratt, Alejandro
  • Diao, Xinshen

Abstract

"Considering the heterogeneity of the countries of southern Africa and the presence of South Africa and other middle-income countries in the region, southern Africa has a unique opportunity to exploit agricultural potential and regional trade opportunities through regional dynamics and integration. We analyze the implications of such opportunities for the growth of the low-income countries, using a regional general equilibrium model that captures growth linkages. We find that growth in the middle-income southern African countries, such as South Africa, benefits the region's low-income countries through increased demand for their agricultural exports. Agricultural productivity growth, however, is necessary for low-income countries to take advantage of South Africa's growth. Productivity growth in the low-income countries' grain and livestock sectors generates more growth in GDP and food consumption than growth in nontraditional export crops. Unlike other regions where growth in grain production is likely to be constrained by domestic demand, expanding middle-income economies in southern Africa provide additional demand for grains and livestock, slowing the decline in grain prices in the region." Authors' Abstract

Suggested Citation

  • Nin-Pratt, Alejandro & Diao, Xinshen, 2006. "Exploring growth linkages and market opportunities for agriculture in Southern Africa," DSGD discussion papers 42, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:dsgddp:42
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    Cited by:

    1. Diao, Xinshen & Dorosh, Paul A. & Rahman, Shaikh Mahfuzur, 2007. "Market opportunities for African agriculture: A General Equilibrium examination of demand-side constraints on agricultural growth in East and Southern Africa," Research reports 154, International Food Policy Research Institute (IFPRI).
    2. repec:rac:ecchap:2017-05 is not listed on IDEAS
    3. Odusola, Ayodele, 2017. "Agriculture, Rural Poverty and Income Inequality in sub-Saharan Africa," UNDP Africa Economists Working Papers 266998, United Nations Development Programme (UNDP).
    4. Fan, Shenggen & Brzeska, Joanna, 2011. "The nexus between agriculture and nutrition: Do growth patterns and conditional factors matter?," 2020 conference briefs 1, International Food Policy Research Institute (IFPRI).
    5. Johnson, M., 2014. "Exploring strategic priorities for regional agricultural research and development investments in Southern Africa," IWMI Working Papers H046297, International Water Management Institute.
    6. UNDP Regional Bureau for Africa & Ayodele Odusola, "undated". "Agriculture, Rural Poverty and Income Inequality in sub-Saharan Africa," UNDP Africa Policy Notes 2017-05, United Nations Development Programme, Regional Bureau for Africa.

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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