IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/249.html
   My bibliography  Save this paper

Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania: A CGE Model Analysis with Endogenous Soil Fertility

Author

Listed:

Abstract

This paper presents an analysis on economy-environmental interlinkages for Tanzania by using a computable general equilibrium (CGE) model based on a social accounting matrix. The purpose of the analysis is to include general equilibrium effects when evaluating two suggested policy measures meant to stimulate growth and crop production. The model is multisectoral with a particular focus on crop producing sectors and soil mining processes. Maize trade liberalization and a fertilizer subsidy are considered. The model simulations show that both policy reforms have expansive effects and that there are significant sectoral complementarities between agriculture and non-agriculture in Tanzania. Fertilizer subsidies promotes cash crop production and a more land intensive production pattern in agriculture, while a maize trade liberalization stimulates food crops and a more land extensive agriculture. Fertilizer subsidies are found to imply far more expansive effects than a trade liberalization does. Only minor differences are identified between the two policy reforms as concerning their impact on the balance of trade, distribution and the environment.

Suggested Citation

  • Sverre Grepperud & Henrik Wiig & Finn Roar Aune, 1999. "Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania: A CGE Model Analysis with Endogenous Soil Fertility," Discussion Papers 249, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:249
    as

    Download full text from publisher

    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp249.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alfsen, Knut H. & Bye, Torstein & Glomsrã˜D, Solveig & Wiig, Henrik, 1997. "Soil degradation and economic development in Ghana," Environment and Development Economics, Cambridge University Press, vol. 2(2), pages 119-143, May.
    2. Persson, Annika & Munasinghe, Mohan, 1995. "Natural Resource Management and Economywide Policies in Costa Rica: A Computable General Equilibrium (CGE) Modeling Approach," The World Bank Economic Review, World Bank, vol. 9(2), pages 259-285, May.
    3. Randolph Barker & Yujiro Hayami, 1978. "Price Support Versus Input Subsidy for Food Self-Sufficiency in Developing Countries," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 26, pages 221-240, Juni.
    4. Dercon, Stefan, 1993. "Peasant Supply Response and Macroeconomic Policies: Cotton in Tanzania," Journal of African Economies, Centre for the Study of African Economies, vol. 2(2), pages 157-194, October.
    5. Glomsrã˜D, Solveig & Monge, Maria Dolores & Vennemo, Haakon, 1999. "Structural adjustment and deforestation in Nicaragua," Environment and Development Economics, Cambridge University Press, vol. 4(1), pages 19-43, February.
    6. Robinson, Sherman, 1989. "Multisectoral models," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 18, pages 885-947, Elsevier.
    7. Alfsen, Knut H. & De Franco, Mario A. & Glomsrod, Solveig & Johnsen, Torgeir, 1996. "The cost of soil erosion in Nicaragua," Ecological Economics, Elsevier, vol. 16(2), pages 129-145, February.
    8. Repetto, Robert, 1987. "Economic Incentives for Sustainable Production," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 21(3), pages 44-59, November.
    9. Hollis Chenery† & T.N. Srinivasan (ed.), 1989. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 2, number 2.
    10. Lipumba, Nguyuru & Ndulu, Benno & Horton, Sue & Plourde, Andre, 1988. "A supply constrained macroeconometric model of Tanzania," Economic Modelling, Elsevier, vol. 5(4), pages 354-376, October.
    11. Stein Hansen, 1990. "Macroeconomic policies and sustainable development in the third World," Journal of International Development, John Wiley & Sons, Ltd., vol. 2(4), pages 533-557, October.
    12. Bagachwa, M. S. D. & Naho, A., 1995. "Estimating the second economy in Tanzania," World Development, Elsevier, vol. 23(8), pages 1387-1399, August.
    13. Mohan Rao, J. & Caballero, Jose Maria, 1990. "Agricultural performance and development strategy: Retrospect and prospect," World Development, Elsevier, vol. 18(6), pages 899-913, June.
    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. Kelly, Valerie & Adesina, Akinwumi A. & Gordon, Ann, 2003. "Expanding access to agricultural inputs in Africa: a review of recent market development experience," Food Policy, Elsevier, vol. 28(4), pages 379-404, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wiig, Henrik & Aune, Jens B. & Glomsrod, Solveig & Iversen, Vegard, 2001. "Structural adjustment and soil degradation in Tanzania: A CGE model approach with endogenous soil productivity," Agricultural Economics, Blackwell, vol. 24(3), pages 263-287, March.
    2. Pandey, Kiran D. & Wheeler, David, 2001. "Structural adjustment and forest resources - the impact of World Bank operations," Policy Research Working Paper Series 2584, The World Bank.
    3. Glomsrod, Solveig & Taoyuan, Wei, 2005. "Coal cleaning: a viable strategy for reduced carbon emissions and improved environment in China?," Energy Policy, Elsevier, vol. 33(4), pages 525-542, March.
    4. Glomsrã˜D, Solveig & Monge, Maria Dolores & Vennemo, Haakon, 1999. "Structural adjustment and deforestation in Nicaragua," Environment and Development Economics, Cambridge University Press, vol. 4(1), pages 19-43, February.
    5. Kenneth W. Clements & Antony Selvanathan & Saroja Selvanathan, 1996. "Applied Demand Analysis: A Survey," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 63-81, March.
    6. Philip D. Adams & Peter B.Dixon, 1996. "Reaching the planners: Generating detailed commodity Forecasts from a computable general equilibrium model," Centre of Policy Studies/IMPACT Centre Working Papers op-83, Victoria University, Centre of Policy Studies/IMPACT Centre.
    7. Jian Xie, 2000. "An Environmentally Extended Social Accounting Matrix," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(4), pages 391-406, August.
    8. Rainer Thiele & Manfred Wiebelt, 1993. "National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(6), pages 501-531, December.
    9. Bill Gibson & Dirk Ernst Van Seventer, 2000. "A Tale of Two Models: Comparing structuralist and neoclassical computable general equilibrium models for South Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(2), pages 149-171.
    10. Scherr, Sara J., 1999. "Soil degradation: a threat to developing-country food security by 2020?," 2020 vision discussion papers 27, International Food Policy Research Institute (IFPRI).
    11. Thierfelder, Karen & Robinson, Sherman, 2002. "Trade and the skilled-unskilled wage gap in a model with differentiated goods," TMD discussion papers 96, International Food Policy Research Institute (IFPRI).
    12. Dixon, Peter B. & Jorgenson, Dale W., 2013. "Introduction," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1-22, Elsevier.
    13. McDonald, Scott & Kirsten, Johann F. & van Zyl, Johan, 1997. "A social accounting matrix for modeling agricultural policy reform in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-20, December.
    14. Karen Thierfelder & Sherman Robinson, 2003. "Trade and Tradability: Exports, Imports, and Factor Markets in the Salter‐Swan Model," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 103-111, March.
    15. Olga Kiuila, 2001. "Computable Models of General Equilibrium (CGE)," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 4.
    16. McDonald, Scott & Punt, Cecilia, 2005. "General equilibrium modelling in South Africa: What the future holds," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-39, March.
    17. Jorge Alarcon & Jan Van Heemst & Niek De Jong, 2000. "Extending the SAM with Social and Environmental Indicators: An Application to Bolivia," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 473-496.
    18. Heerink, Nico & Bao, Xiaobin & Li, Rui & Lu, Kaiyu & Feng, Shuyi, 2009. "Soil and water conservation investments and rural development in China," China Economic Review, Elsevier, vol. 20(2), pages 288-302, June.
    19. Conrad, Klaus, 2001. "Computable General equilibrium Models in Environmental and Resource Economics," Discussion Papers 601, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    20. Claire Delpeuch & Antoine Leblois, 2013. "Sub-Saharan African Cotton Policies in Retrospect," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 617-642, September.

    More about this item

    Keywords

    CGE-model; soil fertility; trade reform; agricultural subsidy.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

    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:ssb:dispap:249. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.