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Can cash transfers promote the local economy? A case study for Cambodia:

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  • Robinson, Sherman
  • Levy, Stephanie

Abstract

While previous research on cash transfer programs has primarily concentrated on micro-economic effects, this paper analyzes general equilibrium effects of social transfer policies using a computable general equilibrium model applied to Cambodia. It identifies the potential impact of these transfers on the local economy, looking particularly at prices and market responses to an increase in demand through production and trade. Our findings show that, for goods and services for which domestic supply is not elastic enough to respond to a significant rise in demand, prices will increase, affecting the value of transfers on poverty reduction.

Suggested Citation

  • Robinson, Sherman & Levy, Stephanie, 2014. "Can cash transfers promote the local economy? A case study for Cambodia:," IFPRI discussion papers 1334, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1334
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    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01334.pdf
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    Cited by:

    1. Villa, Juan M., 2014. "Social transfers and growth: The missing evidence from luminosity data," WIDER Working Paper Series 090, World Institute for Development Economic Research (UNU-WIDER).
    2. Eric ROUGIER & François COMBARNOUS & Yves-André FAURE, 2017. "The ‘local economy’ effect of social transfers: A municipality-level analysis of the local growth impact of the Bolsa Familia Programme in the Brazilian Nordeste," Cahiers du GREThA (2007-2019) 2017-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Spencer, Jenny, 2015. "Good Intentions Aren’t Created Equal: A General Equilibrium Analysis of Food Aid Policies in Ethiopia," Conference papers 332576, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Rougier, Eric & Combarnous, François & Fauré, Yves-André, 2018. "The “Local Economy” Effect of Social Transfers: An Empirical Assessment of the Impact of the Bolsa Família Program on Local Productive Structure and Economic Growth," World Development, Elsevier, vol. 103(C), pages 199-215.
    5. Juan M. Villa, 2014. "Social Transfers and Growth: The Missing Evidence from Luminosity Data," WIDER Working Paper Series wp-2014-090, World Institute for Development Economic Research (UNU-WIDER).
    6. Helmy, Imane & Ghoneim, Hebatallah & Siddig, Khalid, 2019. "Implementing Cash Transfer Programmes in Egypt Differently: An Economic Impact Analysis," Conference papers 333055, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    Keywords

    Agricultural policies; Agricultural development; Impact assessment; agricultural development strategies; social protection; Computable General Equilibrium (CGE) model; impact evaluation;
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