Agriculture, Aid and Economic Growth in Africa
2018
ELR 404
Details
Title
Agriculture, Aid and Economic Growth in Africa
Author
McArthur, J.W.
Sachs, J.D.
Sachs, J.D.
Imprint
Washington D.C. (Washington - USA): The World Bank, 2018.
Language Note
English
Description
66 p.
ISBN/LRC Code
WFPELR404
Summary
How can foreign aid to agriculture support economic growth in Africa? This paper constructs a geographically-indexed applied general equilibrium model that considers pathways through which aid might affect growth and structural transformation of labor markets in the context of soil nutrient variation, minimum subsistence consumption requirements, domestic transport costs, labor mobility and constraints to self-financing of agricultural inputs. Using plausible parameters, the model is presented for Uganda as an illustrative case. Three stylized scenarios demonstrate the potential economy-wide impacts of both soil nutrient loss and replenishment, and how foreign aid can be targeted to support agricultural inputs that boost rural productivity and shift labor to boost real wages. One simulation shows how a temporary program of targeted official development assistance (ODA) for agriculture could generate, contrary to traditional Dutch disease concerns, an expansion in the primary tradable sector and positive permanent productivity and welfare effects, leading to a steady decline in the need for complementary ODA for budget support.
Note
Electronic ed.
Call Number
ELR 404
In
World Bank Policy Research Working Papers
Linked Resources
Full Text
Language
English
System Control No.
MON-016471
Primary Descriptors
Secondary Descriptors
Geographic Terms