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Discounted Agricultural Growth in South Africa

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  • Miesha J. Williams

    (Morehouse College)

Abstract

This paper examines impacts of appropriate resource allocation on subsistence level output. This study uses a stylized Coase Bargaining model and data from the South African Reserve bank to support the second welfare theorem. Back of the envelope calculations indicate the opportunity cost of manufacturing output has been the 20% discount in agricultural output in South Africa since 1968. This paper offers an exercise that can be implemented in developing nations having institutions resulting in two-sector economies. Moreover, the methods used here will help policy makers to estimate an appropriate value for wealth transfers.

Suggested Citation

  • Miesha J. Williams, 2017. "Discounted Agricultural Growth in South Africa," The Review of Black Political Economy, Springer;National Economic Association, vol. 44(3), pages 353-362, December.
  • Handle: RePEc:spr:blkpoe:v:44:y:2017:i:3:d:10.1007_s12114-017-9262-0
    DOI: 10.1007/s12114-017-9262-0
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    References listed on IDEAS

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    1. Lambert, Sylvie & Ravallion, Martin & van de Walle, Dominique, 2014. "Intergenerational mobility and interpersonal inequality in an African economy," Journal of Development Economics, Elsevier, vol. 110(C), pages 327-344.
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    4. Darrick Hamilton & William Darity, 2010. "Can ‘Baby Bonds’ Eliminate the Racial Wealth Gap in Putative Post-Racial America?," The Review of Black Political Economy, Springer;National Economic Association, vol. 37(3), pages 207-216, September.
    5. Bardhan, Pranab & Ghatak, Maitreesh & Karaivanov, Alexander, 2007. "Wealth inequality and collective action," Journal of Public Economics, Elsevier, vol. 91(9), pages 1843-1874, September.
    6. Valsecchi, Michele, 2014. "Land property rights and international migration: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 110(C), pages 276-290.
    7. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
    8. Wellings, Paul & Black, Anthony, 1986. "Industrial decentralization under apartheid: The relocation of industry to the South African periphery," World Development, Elsevier, vol. 14(1), pages 1-38, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Distribution; Land; Property rights; Wealth distribution; Welfare; Contracts; Institutions; Policy; Colonialism; Apartheid; Development; Tax; Collective bargaining; Labor mobility; Africa; South Africa; Agriculture; Manufacturing;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • F6 - International Economics - - Economic Impacts of Globalization
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other

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