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Exporing growth linkages and market opportunities for agriculture in Southern Africa:

  • Nin Pratt, Alejandro
  • Diao, Xinshen

"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

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Paper provided by International Food Policy Research Institute (IFPRI) in its series DSGD discussion papers with number 42.

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Date of creation: 2006
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Handle: RePEc:fpr:dsgddp:42
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  1. Jonathan Kydd & Andrew Dorward & Jamie Morrison & Georg Cadisch, 2004. "Agricultural development and pro-poor economic growth in sub-Saharan Africa: potential and policy," Oxford Development Studies, Taylor & Francis Journals, vol. 32(1), pages 37-57.
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  3. Hertel, Thomas & David Hummels & Maros Ivanic & Roman Keeney, 2003. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," GTAP Working Papers 1324, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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