Market Opportunities for African Agriculture: A General Equilibrium Examination of Demand-Side Constraints on Agricultural Growth in East and Southern Africa

IFPRI Research Report No. 154

94 Pages Posted: 2 Oct 2008

See all articles by Xinshen Diao

Xinshen Diao

International Food Policy Research Institute (IFPRI)

Paul Dorosh

International Food Policy Research Institute (IFPRI)

Shaikh Mahfuzur Rahman

World Bank

Date Written: November 30, 2007

Abstract

How can East and Southern African nations reduce poverty and hunger through agricultural growth? How can they create sufficient market demand to power such growth? This report proposes answers to these questions, applying a general equilibrium framework to the experiences of Madagascar, Malawi, Mozambique, Tanzania, Uganda, Zambia, and Zimbabwe. The authors conclude that, for countries like these, promoting traditional agricultural exports, developing nontraditional exports, and increasing food staple growth will probably not be sufficient to generate a significant level of economic growth. Instead, the model simulations suggest that reductions in marketing costs through improved infrastructure and development of market institutions, along with significant growth in the nonagricultural economy (besides that generated by agricultural growth linkages) are necessary conditions for rapid economic growth. This report's findings are a valuable first step toward understanding how East and Southern African nations can achieve economywide growth and poverty reduction.

Keywords: Madagascar, Malawi, Mozambique, Tanzania, Uganda, Zambia, Zimbabwe, Agricultural growth exports, Poverty reduction, General equilibrium model, food consumption, Markets, income, growth

JEL Classification: Q18

Suggested Citation

Diao, Xinshen and Dorosh, Paul and Rahman, Shaikh Mahfuzur Mahfuzur, Market Opportunities for African Agriculture: A General Equilibrium Examination of Demand-Side Constraints on Agricultural Growth in East and Southern Africa (November 30, 2007). IFPRI Research Report No. 154, Available at SSRN: https://ssrn.com/abstract=1275980 or http://dx.doi.org/10.2139/ssrn.1275980

Xinshen Diao (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

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Paul Dorosh

International Food Policy Research Institute (IFPRI) ( email )

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+1 202-862-5600 (Phone)
+1 202-467-4439 (Fax)

HOME PAGE: http://www.ifpri.org/

Shaikh Mahfuzur Mahfuzur Rahman

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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