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Title: | On the Choice of Appropriate Development Strategy: Insights Gained from CGE Modelling of the Mozambican Economy |
Authors: | Jensen, Henning Tarp Tarp, Finn |
Year: | 2004 |
Periodical: | Journal of African Economies |
Volume: | 13 |
Issue: | 3 |
Pages: | 446-478 |
Language: | English |
Geographic term: | Mozambique |
Subjects: | economic development economic policy agricultural policy Economics and Trade Development and Technology Agriculture, Natural Resources and the Environment |
External link: | https://jae.oxfordjournals.org/content/13/3/446.full.pdf |
Abstract: | Due to legacies of the past, there are a limited number of ways in which Mozambique can realistically pursue economic development and poverty reduction in the medium term. Agricultural development must - in one way or another - form an integral part of any sustainable development strategy in the country. This paper uses a 1997 Computable General Equilibrium (CGE) model to analyse three strategies which Mozambique can pursue in furthering a sustainable development process. They include (1) agriculture-first, focusing on improving primary production technologies and the marketing system; (2) agricultural-development-led-industrialization (ADLI), which adds better small-scale agro-industrial production technologies to the agriculture-first strategy; and (3) a primary-sector export-oriented strategy. Then analysis shows that ADLI dominates the two other approaches and the distributional implications of ADLI are attractive. The authors also find that there are important synergy effects to be reaped from balanced agricultural and agro-industrial development, and the primary-sector export-oriented strategy represents a potentially significant set of complementary policies. Finally, the importance of taking structural differences among household groupings into account when formulating comprehensive pro-equity and antipoverty development strategies is prominent. Bibliogr., notes, sum. [Journal abstract] |