111. On the Choice of Appropriate Development Strategy: Insights from CGE Modelling of the Mozambican Economy
- Author:
- Finn Tarp and Tarp Jensen Henning
- Publication Date:
- 12-2001
- Content Type:
- Working Paper
- Institution:
- United Nations University
- 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.
- Topic:
- Agriculture, Development, and Human Welfare
- Political Geography:
- Africa