IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-11-00113.html
   My bibliography  Save this article

Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model

Author

Listed:
  • Fousseini Traoré

    (International Food Policy Research Institute)

Abstract

The impact of the United States' and the European Union's subsidies on world cotton price has been an important subject in recent years. This paper examines the impact that the removal of these subsidies would have on Malian economy (GDP, public accounts, and households' income). The issue is addressed with a multimarket-computable general equilibrium model detailing the Malian cotton sector. The results show a positive impact on GDP as well as on households and government incomes. These results are robust to systematic sensitivity analysis taking into account parameter uncertainty.

Suggested Citation

  • Fousseini Traoré, 2012. "Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model," Economics Bulletin, AccessEcon, vol. 32(2), pages 1640-1652.
    • Handle: RePEc:ebl:ecbull:eb-11-00113
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P158.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    2. David Abler & Adrián Rodríguez & James Shortle, 1999. "Parameter Uncertainty in CGE Modeling of the Environmental Impacts of Economic Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 75-94, July.
    3. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "Argentine Agricultural Policy in a Multiple-Output, Multiple- Input Framework," Others 0501002, University Library of Munich, Germany.
    4. Jensen, Jesper & Rutherford, Thomas & Tarr, David, 2005. "Telecommunications reform within Russia's accession to the World Trade Organization," Policy Research Working Paper Series 3501, The World Bank.
    5. Anne‐Sophie Robilliard & Sherman Robinson, 2003. "Reconciling Household Surveys and National Accounts Data Using a Cross Entropy Estimation Method," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 395-406, September.
    6. Dorothée Boccanfuso & Luc Savard, 2007. "Poverty and Inequality Impact Analysis Regarding Cotton Subsidies: A Mali-based CGE Micro-accounting Approach," Journal of African Economies, Centre for the Study of African Economies, vol. 16(4), pages 629-659, August.
    7. Merlinda D. Ingco & John D. Nash, 2004. "Agriculture and the WTO : Creating a Trading System for Development," World Bank Publications - Books, The World Bank Group, number 14930.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    2. Gadanakis, Yiorgos & Baourakis, George & Clapan, Carmen, 2007. "Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework," Working Papers 7285, TRADEAG - Agricultural Trade Agreements.
    3. Claire Delpeuch & Antoine Leblois, 2013. "Sub-Saharan African Cotton Policies in Retrospect," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 617-642, September.
    4. Hanson, Kenneth & Somwaru, Agapi, 2003. "Distributional Effects of U.S. Farm Commodity Programs: Accounting for Farm and Non-Farm Households," Conference papers 331120, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Qin Fan & Meri Davlasheridze, 2019. "Economic Impacts Of Migration And Brain Drain After Major Catastrophe: The Case Of Hurricane Katrina," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-21, February.
    6. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Yusuf, Arief Anshory, 2006. "On the re-assessment of inequality in Indonesia: household survey or national account?," MPRA Paper 1728, University Library of Munich, Germany.
    8. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    9. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
    10. Camara, Alhassane & Savard, Luc, 2023. "Impact of agricultural input subsidy policy on market participation and income distribution in Africa: A bottom-up/top-down approach," Economic Modelling, Elsevier, vol. 129(C).
    11. Tarr, David, 2012. "Impact of services liberalization on industry productivity, exports and development : six empirical studies in the transition countries," Policy Research Working Paper Series 6023, The World Bank.
    12. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), pages 1-18, August.
    13. Agenor, Pierre-Richard & Chen, Derek H.C. & Grimm, Michael, 2004. "Linking representative household models with household surveys for poverty analysis : a comparison of alternative methodologies," Policy Research Working Paper Series 3343, The World Bank.
    14. Minot, Nicholas & Dewina, Reno, 2013. "Impact of food price changes on household welfare in Ghana:," IFPRI discussion papers 1245, International Food Policy Research Institute (IFPRI).
    15. Diao, Xinshen & Diaz-Bonilla, Eugenio & Robinson, Sherman & Orden, David, 2005. "Tell me where it hurts, an' I'll tell you who to call," MTID discussion papers 84, International Food Policy Research Institute (IFPRI).
    16. Delpeuch, Claire & Vandeplas, Anneleen, 2013. "Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," World Development, Elsevier, vol. 42(C), pages 209-221.
    17. Charlotte Fontan, 2006. "« L’outil » filière agricole pour le développement rural," Documents de travail 124, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    18. Nabil Annabi & Fatou Cissé & John Cockburn & Bernard Decaluwé, 2005. "Trade Liberalisation, Growth and Poverty in Senegal: a Dynamic Microsimulation CGE Model Analysis," Cahiers de recherche 0512, CIRPEE.
    19. Giulia Colombo, 2010. "Linking CGE and microsimulation models: a comparison of different approaches," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 72-91.
    20. Eicher, Carl K. & Maredia, Karim & Sithole-Niang, Idah, 2006. "Crop biotechnology and the African farmer," Food Policy, Elsevier, vol. 31(6), pages 504-527, December.

    More about this item

    Keywords

    cotton; subsidies; Mali; general equilibrium.;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.