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The Role of Livestock in the Tanzanian Economy: Policy Analysis Using a Dynamic Computable General Equilibrium Model for Tanzania

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  • Engida, Ermias
  • Guthiga, Paul
  • Karugia, Joseph

Abstract

In agricultural economies of Africa, livestock sub-sector supports livelihoods of large proportion of households and has important role on value addition and on insuring national food security. However, its importance has often been ignored by policymakers as well as researchers. Researchers neglect livestock sector mainly for methodological reasons. This study tries to overcome this problem. We extend an existing DCGE model for Tanzania with a separately built herd dynamics module which enables us to specify stock–flow relationship, distinguishing between the capital role of livestock and the flow of livestock products. The results from realistic TFP shocks on different agricultural sub-sectors clearly show that livestock sub-sector has better growth elasticity greater than the cereal and cash crop sub-sectors in contrast to previous literature. Factors reallocation among activities is observed which leads us to emphasize on livestock – cereal sub-sectors joint growth plan rather than cereal sub-sector growth alone.

Suggested Citation

  • Engida, Ermias & Guthiga, Paul & Karugia, Joseph, 2015. "The Role of Livestock in the Tanzanian Economy: Policy Analysis Using a Dynamic Computable General Equilibrium Model for Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212039, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212039
    DOI: 10.22004/ag.econ.212039
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    Cited by:

    1. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Mainar Causape Alfredo & Ilaria Proietti, 2017. "Boosting the Fertilizer Production in Kenya: a CGE analysis," JRC Research Reports JRC104685, Joint Research Centre.
    2. Nyanjige Mbembela Mayala & Mangasini Atanasi Katundu & Elibariki Emmanuel Msuya, 2019. "Socio-cultural Factors influencing livestock investment decisions among Smallholder Farmers in Mbulu and Bariadi Districts, Tanzania," Global Business Review, International Management Institute, vol. 20(5), pages 1214-1230, October.
    3. Bergius, Mikael & Benjaminsen, Tor A. & Maganga, Faustin & Buhaug, Halvard, 2020. "Green economy, degradation narratives, and land-use conflicts in Tanzania," World Development, Elsevier, vol. 129(C).

    More about this item

    Keywords

    Agricultural and Food Policy; Livestock Production/Industries;

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