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Title | External shocks and domestic poverty alleviation |
Subtitle | simulations with a CGE model of Malawi |
Author |
Lofgren, Hans Chulu, Osten Sichinga, Osky Simtowe, Franklin Tchale, Hardwick Teska, Ralph Wobst, Peter |
Year | 2001 |
Abstract | Two sets of issues loom large on the economic horizon of Malawi: poverty alleviation and the country’s vulnerability to shocks emanating from the outside world. In this paper, simulations with a Computable General Equilibrium (CGE) model of Malawi are used to analyze aspects of these issues. Two types of poverty-alleviating domestic policy shifts are simulated: a public works program and a land reform program. The public works program may function as an absorber of negative shocks elsewhere in the economy. The land reform program may introduce a structural change in the distribution of factor incomes in favor of the poor. The results for the simulated external shocks confirm that Malawi’s economy is highly sensitive to external shocks of the magnitudes that the country has experienced in recent years. The consequences are particularly negative for the non-agricultural population. A more diversified production and export structure would make Malawi less vulnerable to external price shocks and reduce the pressures that lead to sharp exchange rate fluctuations. |
Series Name | TMD Discussion Paper |
Series Number | 71 |
Publisher | International Food Policy Research Institute (IFPRI) |
Place of publication | Washington, D.C. |
Language | English |
Record Type | Discussion paper |
Peer Reviewed - PR or Non-PR | Non-PR |
Subject - country location |
MALAWI SOUTHERN AFRICA AFRICA SOUTH OF SAHARA AFRICA |
Subject - keywords |
Poverty alleviation -- Malawi. Economic situation. Equilibrium (Economics) -- Simulation methods. mathematical models |
Subject - author supplied keywords | Computable General Equilibrium (CGE) model |
JEL Descriptors | C68 Computable General Equilibrium Models |
IFPRI Descriptors |
IFPRI1 Poverty Reduction |
IFPRI Division | TMD |
Access Rights | Open Access |
LOC call number | TMD DP71 |
Physical description | 63 pages |
IFPRI Web link | http://www.ifpri.org/divs/tmd/dp/tmdp71.htm |
Requests | mailto:ifpri-library@cgiar.org |
CONTENTdm file name | 74077.cpd |
Date cataloged | 2019-07-09 |
Date modified | 2019-07-09 |
OCLC number | 780173809 |
CONTENTdm number | 74076 |
Description
Title | tmdp71 26 |
Access Rights | Open Access |
Requests | mailto:ifpri-library@cgiar.org |
CONTENTdm file name | 74039.pdfpage |
Date cataloged | 2011-07-22 |
Date modified | 2011-07-22 |
CONTENTdm number | 74038 |
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