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

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  • Henning Tarp
  • Jensen Finn Tarp

Abstract

This paper uses a 1997 Computable General Equilibrium (CGE) model to analysethree strategies which Mozambique can pursue in furthering a sustainable developmentprocess. They include (i) agriculture-first, (ii)agricultural-development-led-industrialisation (ADLI) and (iii) a primary-sectorexport-oriented strategy. ADLI dominates the two other approaches and the distributionalimplications of ADLI are attractive. We also find that there are important synergyeffects to be reaped from balanced agricultural and agro-industrial development, and theprimarysector export-oriented strategy represents a potentially significant set ofcomplementary policies. Finally, the importance of taking structural differences amonghousehold groupings into account when formulating comprehensive pro-equity andanti-poverty development strategies is prominent.

Suggested Citation

  • Henning Tarp & Jensen Finn Tarp, 2004. "On the Choice of Appropriate Development Strategy: Insights Gained from CGEModelling of the Mozambican Economy," Journal of African Economies, Centre for the Study of African Economies, vol. 13(3), pages 446-478.
    • Handle: RePEc:oup:jafrec:v:13:y:2004:i:3:p:446-478.
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    File URL: http://hdl.handle.net/10.1093/jae/ejh026
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    Cited by:

    1. Sryneath Chhuor, 2017. "Potential roles of export orientation of Cambodia’s agriculture and agro-industry: an application of CGE analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-33, December.
    2. Patrice Rélouendé Zidouemba, 2021. "Does agriculture possess the strong linkages necessary to drive industrialization and poverty reduction in Burkina Faso?," Economics Bulletin, AccessEcon, vol. 41(3), pages 911-928.
    3. João Z. Carrilho & Ines A. Ferreira & Rui N. Ribeiro & Finn Tarp, 2021. "The relative neglect of agriculture in Mozambique," WIDER Working Paper Series wp-2021-135, World Institute for Development Economic Research (UNU-WIDER).

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