Agriculture, Aid, and Economic Growth in Africa

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 variatio...

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Main Authors:	McArthur, John W., Sachs, Jeffrey D.
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2020
Subjects:	FOREIGN AID OFFICIAL DEVELOPMENT ASSISTANCE ECONOMIC GROWTH AGRICULTURAL PRODUCTIVITY RURAL PRODUCTIVITY FARM PRODUCTIVITY AGRICULTURE
Online Access:	http://hdl.handle.net/10986/34286

id	okr-10986-34286
recordtype	oai_dc
spelling	okr-10986-342862021-05-25T10:54:38Z Agriculture, Aid, and Economic Growth in Africa McArthur, John W. Sachs, Jeffrey D. FOREIGN AID OFFICIAL DEVELOPMENT ASSISTANCE ECONOMIC GROWTH AGRICULTURAL PRODUCTIVITY RURAL PRODUCTIVITY FARM PRODUCTIVITY AGRICULTURE 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. We present three stylized scenarios to 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. 2020-08-06T16:20:48Z 2020-08-06T16:20:48Z 2019-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/34286 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Sub-Saharan Africa Uganda
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	FOREIGN AID OFFICIAL DEVELOPMENT ASSISTANCE ECONOMIC GROWTH AGRICULTURAL PRODUCTIVITY RURAL PRODUCTIVITY FARM PRODUCTIVITY AGRICULTURE
spellingShingle	FOREIGN AID OFFICIAL DEVELOPMENT ASSISTANCE ECONOMIC GROWTH AGRICULTURAL PRODUCTIVITY RURAL PRODUCTIVITY FARM PRODUCTIVITY AGRICULTURE McArthur, John W. Sachs, Jeffrey D. Agriculture, Aid, and Economic Growth in Africa
geographic_facet	Africa Sub-Saharan Africa Uganda
description	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. We present three stylized scenarios to 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.
format	Journal Article
author	McArthur, John W. Sachs, Jeffrey D.
author_facet	McArthur, John W. Sachs, Jeffrey D.
author_sort	McArthur, John W.
title	Agriculture, Aid, and Economic Growth in Africa
title_short	Agriculture, Aid, and Economic Growth in Africa
title_full	Agriculture, Aid, and Economic Growth in Africa
title_fullStr	Agriculture, Aid, and Economic Growth in Africa
title_full_unstemmed	Agriculture, Aid, and Economic Growth in Africa
title_sort	agriculture, aid, and economic growth in africa
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2020
url	http://hdl.handle.net/10986/34286
_version_	1764480578060550144

Agriculture, Aid, and Economic Growth in Africa

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