Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor
The reduction of the existing global distortions to agricultural incentives is sometimes stated as a priority to fight poverty worldwide. But the impacts of global trade policy and domestic development policy reforms are rarely, if ever, compared. Despite technical limitations hindering rigorous comparison of the overall growth effects, also hampering cost-benefit analysis, this paper contributes at filling this gap by focusing on the comparison of the distributional poverty impacts of both types of policies. It uses the MIRAGE global computable general equilibrium –CGE- model feeding a national CGE model representing Malawi in 2007 linked to household survey to examine how different trade policy reforms by Malawi and the rest of the world would impact poverty in Malawi. The country’s recent agricultural growth history due to the Fertilizer Input Subsidy Program is replicated and compared with a more broad-based sectoral approach. The effects of accelerating growth in agriculture and downstream sectors are compared with those of integrating in the regional and multilateral markets. Non preferential trade policy reforms are found to be less favourable for poverty reduction of the poorest than regional integration or preferential integration. Faster intensification and diversification of agriculture is found to enable targeting the poorest that are less likely to be connected to international markets. Therefore, while policy reforms generating growth in general may be good for some poors, it is found that that not all policy reforms are equally good. Thus, despite the fact that trade policies could help fight poverty in Malawi, there are no substitute to development policies, and if undertaken simultaneously, their coherence should be checked thoroughly.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douillet, Mathilde, 2011. "Which trade integration scheme can best help Sub-Saharan Africa develop and export more processed agricultural goods?:," IFPRI discussion papers 1119, International Food Policy Research Institute (IFPRI).
- Jones, Chris & Morrissey, Oliver & Nelson, Doug, 2011. "Did the World Bank Drive Tariff Reforms in Eastern Africa?," World Development, Elsevier, vol. 39(3), pages 324-335, March.
- Pauw, Karl & Thurlow, James & van Seventer, Dirk, 2010. "Droughts and floods in Malawi," IFPRI discussion papers 962, International Food Policy Research Institute (IFPRI).
- Diao, Xinshen & Robinson, Sherman & Thomas, Marcelle & Wobst, Peter, 2002. "Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe," TMD discussion papers 91, International Food Policy Research Institute (IFPRI).
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Harrison, Ann & McLaren, John & McMillan, Margaret S., 2010.
"Recent findings on trade and inequality:,"
IFPRI discussion papers
1047, International Food Policy Research Institute (IFPRI).
- Ann Harrison & John McLaren & Margaret S. McMillan, 2010. "Recent Findings on Trade and Inequality," NBER Working Papers 16425, National Bureau of Economic Research, Inc.
- Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
- Antoine BOUÃ‹T & David LABORDE & Elisa DIENESCH & Kimberly ELLIOT, 2010. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries : Who and What Matters," Working Papers 11, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Feb 2010.
- Antoine Bouët, David Laborde Debucquet,Elisa Dienesch, and Kimberly Elliott, 2010. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Working Papers 206, Center for Global Development.
- Jean-Pierre Cling & Mohamed Ali Marouani & Mireille Razafindrakoto & Anne-Sophie Robilliard & Francois Roubaud, 2009. "The Distributive Impact of Vietnam's Accession to the WTO," Economie Internationale, CEPII research center, issue 118, pages 43-71.
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 626-670, December.
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Would multilateral trade reform benefit Sub-Saharan Africans?," Policy Research Working Paper Series 3616, The World Bank.
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Centre for International Economic Studies Working Papers 2005-18, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," CEPR Discussion Papers 5049, C.E.P.R. Discussion Papers.
- Bouet, Antoine & Laborde, David, 2010. "Eight Years of Doha Trade Talks: Where Do We Stand?," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 11(2).
- Antoine Bouet & David Laborde, 2010. "Eight years of Doha trade talks : where do we stand," Working Papers hal-00637589, HAL.
- Antoine Bouet & Valdete Berisha-Krasniqui & Valdete Berisha-Krasniqui & Carmen Estrades & David Laborde, 2013. "Households heterogeneity in a global CGE model: an illustration with the MIRAGE-HH (MIRAGE-HouseHolds) model," Larefi Working Papers 1301, Larefi, Université Bordeaux 4.
- Antoine Bouet & Carmen Estrades & David Laborde, 2013. "Households heterogeneity in a global CGE model: an illustration with the MIRAGE-HH (MIRAGE-HouseHolds) model," Working Papers hal-00780103, HAL.
- Xinshen Diao & Paul Dorosh, 2007. "Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis," Development Policy Review, Overseas Development Institute, vol. 25(3), pages 275-292, 05.
- Minot, Nicholas & Benson, Todd, 2009. "Fertilizer subsidies in Africa: Are vouchers the answer?," Issue briefs 60, International Food Policy Research Institute (IFPRI).
- Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
- Yvan Decreux & Hugo Valin, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 2007-15, CEPII research center.
- Decreux, Yvan & Valin, Hugo, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 7284, TRADEAG - Agricultural Trade Agreements.
- Benin, Samuel & Thurlow, James & Diao, Xinshen & McCool, Christen & Simtowe, Franklin, 2008. "Agricultural growth and investment options for poverty reduction in Malawi:," IFPRI discussion papers 794, International Food Policy Research Institute (IFPRI).
- François Bourguignon & Maurizio Bussolo & John Cockburn, 2010. "Guest Editorial - Macro-micro analytics: background, motivation, advantages and remaining challenges," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 1-7.
- Valenzuela, Ernesto & van der Mensbrugghe, Dominique & Anderson, Kym, 2008. "General equilibrium effects of price distortions on global markets, farm incomes and welfare," Agricultural Distortions Working Paper 48630, World Bank.
- Stephen Devereux, 2007. "The impact of droughts and floods on food security and policy options to alleviate negative effects," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 47-58, December.
- Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.
- James Thurlow & Peter Wobst, 2006. "Not All Growth is Equally Good for the Poor: The Case of Zambia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 603-625, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40948. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.