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Welfare and sectoral productivity shifts in a small open economy with imported agricultural inputs: The case of Sub-Saharan Africa

Author

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  • Juan Antonio García-Cebro

    (University of A Coruña)

  • Alejandro Quintela-Del-Río

    (University of A Coruña)

  • Ramón Varela-Santamaría

    (University of A Coruña)

Abstract

This paper studies the impact of sectoral productivity growth on welfare in Sub-Saharan Africa. Using the analytical framework of a DSGE model, the main finding is that, for the estimated values of structural parameters, the allocation of scarce resources to the tradable agricultural sector for boosting productivity leads to a greater increase in overall welfare than would be the case if they were allocated to the non-traded goods sector.

Suggested Citation

  • Juan Antonio García-Cebro & Alejandro Quintela-Del-Río & Ramón Varela-Santamaría, 2023. "Welfare and sectoral productivity shifts in a small open economy with imported agricultural inputs: The case of Sub-Saharan Africa," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(3), pages 353-376, September.
    • Handle: RePEc:spr:portec:v:22:y:2023:i:3:d:10.1007_s10258-022-00218-x
    DOI: 10.1007/s10258-022-00218-x
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    More about this item

    Keywords

    NOEM models; Agricultural productivity; Development Economics; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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