IDEAS home Printed from https://ideas.repec.org/p/ipc/cstudy/10.html
   My bibliography  Save this paper

Growth, Poverty and Inequality in Mozambique

Author

Listed:
  • Pekka Virtanen

    () (University of Tampere, Finland)

  • Dag Ehrenpreis

    () (International Poverty Centre)

Abstract

Mozambique has experienced more than a decade of sustained economic growth based on two sectors, agriculture and industry. Absolute poverty has fallen rapidly. The main factor in the reduction of poverty since the mid 1990s has been increased production in agriculture, the main source by far of livelihoods in the country. However, this growth represents only a ?bounce-back? to pre-war levels of agricultural production, without any substantial improvement in productivity, which remains very low even when compared regionally. Growth in industrial production has been the main driving force behind Mozambique?s rapidly growing exports. Based on a few mega-projects, this growth has, however, created few jobs while its contribution to public revenue has been marginal when compared to its value of production. Due to the enclave character of such projects, the spillover effect in terms of technology transfer or skills development has been minimal. External aid provides a major part of all foreign exchange available to Mozambique, and it has thus far had a positive effect on growth without major negative impact on the real exchange rate. Aid must be allocated now to crucial services for creating globally competitive agricultural production capacity, including rural infrastructure, in order to promote sustainable livelihoods and enhance labour productivity.

Suggested Citation

  • Pekka Virtanen & Dag Ehrenpreis, 2007. "Growth, Poverty and Inequality in Mozambique," Country Study 10, International Policy Centre for Inclusive Growth.
  • Handle: RePEc:ipc:cstudy:10
    as

    Download full text from publisher

    File URL: http://www.ipc-undp.org/pub/IPCCountryStudy10.pdf
    File Function: First version, 2007
    Download Restriction: no

    References listed on IDEAS

    as
    1. Benfica, Rui M.S. & Zandamela, Julieta & Miguel, Arlindo & de Sousa, Natercia, 2005. "The Economics of Smallholder Households in Tobacco and Cotton Growing Areas of the Zambezi Valley of Mozambique," Food Security Collaborative Working Papers 56064, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Simler, Kenneth R. & Mukherjee, Sanjukta & Dava, Gabriel & Datt, Gaurav, 2003. "Rebuilding after war: micro-level determinants of poverty reduction in Mozambique," Research reports 132, International Food Policy Research Institute (IFPRI).
    3. Christopher S. Adam & David L. Bevan, 2006. "Aid and the Supply Side: Public Investment, Export Performance, and Dutch Disease in Low-Income Countries," World Bank Economic Review, World Bank Group, vol. 20(2), pages 261-290.
    4. Robert Lensink & Oliver Morrissey, 2000. "Aid instability as a measure of uncertainty and the positive impact of aid on growth," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 31-49.
    5. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
    6. Todd Moss & Gunilla Pettersson & Nicolas van de Walle, 2006. "An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa," Working Papers 74, Center for Global Development.
    7. Channing Arndt & Sam Jones & Finn Tarp, 2006. "Aid and Development: The Mozambican Case," Discussion Papers 06-13, University of Copenhagen. Department of Economics.
    8. Tarp, Finn, et al, 2002. "The Robustness of Poverty Profiles Reconsidered," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 77-108, October.
    9. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Aid to Africa: an unfinished agenda," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 989-1001.
    10. Brautigam, Deborah A & Knack, Stephen, 2004. "Foreign Aid, Institutions, and Governance in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 255-285, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alex Warren-Rodriguez, 2010. "Uncovering Trends in the Accumulation of Technological Capabilities and Skills in the Mozambican Manufacturing Sector," Oxford Development Studies, Taylor & Francis Journals, vol. 38(2), pages 171-198.
    2. Lars Buur & Carlota Mondlane & Obede Baloi, 2011. "Strategic privatisation: rehabilitating the Mozambican sugar industry," Review of African Political Economy, Taylor & Francis Journals, vol. 38(128), pages 235-256, June.

    More about this item

    Keywords

    Growth; Poverty; Inequality; Mozambique;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipc:cstudy:10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andre Lyra). General contact details of provider: http://edirc.repec.org/data/ipcunbr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.