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Open AccessJournal ArticleDOI

On the Choice of Appropriate Development Strategy: Insights Gained from CGE Modelling of the Mozambican Economy

Henning Tarp Jensen, +1 more
- 01 Sep 2004 - 
- Vol. 13, Iss: 3, pp 446-478
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TLDR
In this paper, the authors make use of a 1997 computable general equilibrium (CGE) model to analyse three potential strategies that Mozambique can pursue unilaterally with a view to initiating a sustainable development process.
Abstract
This paper makes use of a 1997 computable general equilibrium (CGE) model to analyse three potential strategies that Mozambique can pursue unilaterally with a view to initiating a sustainable development process. They include (i) an agriculture-first strategy, (ii) an agricultural-development led industrialization (ADLI) strategy, and (iii) a primary-sector export-oriented strategy. The ADLI strategy dominates the other development strategies since important synergy effects in aggregate welfare arise from including key agro-industry sectors into the agriculture-first development strategy. Moreover, the ADLI strategy can be designed so it has a relatively strong impact on the welfare of the poorest poverty-stricken households, and still maintain the politically sensitive factorial distribution of income.

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Economic complexity and structural transformation: the case of Mozambique

TL;DR: In this article, the authors identify new products and sectors that can help to diversify and upgrade Mozambique's economy by systematically accounting for both supply-and demand-side factors, and identify a set of target products that are complex, require productive capabilities useful in the export of other products.
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Reducing poverty through subsidies: simulation of fuel subsidy diversion to non-food crops

TL;DR: In this paper, the impact of fuel subsidy diversion to non-food crops sector on income levels was analyzed using a Computable General Equilibrium model, and the authors applied the Foster-Greer-Thorbecke (FGT) index to measure the indicators of poverty (head count index, poverty gap index and poverty severity index).
References
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Journal ArticleDOI

Beyond export-led growth

TL;DR: In this article, the authors compared the relative merits of two alternative open development strategies (i.e., export-led industrialization and agricultural demand-driven industrialization) by means of several simulation experiments.
Journal ArticleDOI

When Economic Reform Goes Wrong: Cashews in Mozambique

TL;DR: In this paper, the authors analyzed the available evidence and provided an accounting of the distributional and efficiency consequences of the reform and estimated that the direct benefits from reducing restrictions on raw cashew exports were of the order $6.6 million annually, or about 0.14% of Mozambique GDP.
Journal ArticleDOI

Marketing Margins and Agricultural Technology in Mozambique

TL;DR: In this paper, the authors used a computable general equilibrium (CGE) model to analyse the effect of marketing costs on agricultural productivity and welfare in Mozambique, and found that marginal welfare improvements are higher for poor rural households, while factor returns increase in roughly equal proportions.
Posted ContentDOI

Africa's changing agricultural development strategies: past and present paradigms as a guide to the future

TL;DR: Delgado as discussed by the authors takes a critical look at the changing paradigms of agricultural development that have influenced agricultural policy in Africa since the colonial era and concludes that Africans have relatively little input into the intellectual bases of strategies affecting their rural areas, a situation that must be changed if future strategies are to be effective in dealing with Africa's problems of development.
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