IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331694.html
   My bibliography  Save this paper

Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique

Author

Listed:
  • Arndt, Channing
  • Benfica, Rui
  • Tarp, Finn
  • Thurlow, James
  • Uaiene, Rafael

Abstract

Large investments in bio-fuels are currently in process in Mozambique. This analysis seeks to assess the macroeconomic implications of biofuels investment for growth and income distribution using an economywide framework. Results suggest that biofuels provide Mozambique with an opportunity to substantially enhance economic growth and poverty reduction. The primary biofuels scenario modeled here results in increases in the average annual economic growth rate of 0.6% and reductions in poverty incidence by six percentage points at the end of a 12 year phase in period. Institutional arrangements and production technologies matter. We find that an outgrower approach is much more strongly pro-poor due to greater use of unskilled labor and the accrual of land rents to smallholders compared with a plantation approach. The growth and poverty reduction benefits of outgrower schemes are further enhanced if the schemes result in technology spillovers to other crops.

Suggested Citation

  • Arndt, Channing & Benfica, Rui & Tarp, Finn & Thurlow, James & Uaiene, Rafael, 2008. "Biofuels, Poverty, and Growth: A Computable General Equilibrium Analysis of Mozambique," Conference papers 331694, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331694
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331694/files/3918.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Amos Golan & Stephen Vogel, 2000. "Estimation of Non-Stationary Social Accounting Matrix Coefficients with Supply-Side Information," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 447-471.
    2. Lence, Sergio H & Miller, Douglas J, 1998. "Estimation of Multi-output Production Functions with Incomplete Data: A Generalised Maximum Entropy Approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(2), pages 188-209.
    3. Channing Arndt & Kenneth R. Simler, 2007. "Consistent poverty comparisons and inference," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 133-139, September.
    4. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
    5. Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
    6. Richard E. Just & David Zilberman & Eithan Hochman & Ziv Bar-Shira, 1990. "Input Allocation in Multicrop Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 200-209.
    7. Channing Arndt & Robert C. James & Kenneth R. Simler, 2006. "Has Economic Growth in Mozambique been Pro-Poor?," Journal of African Economies, Centre for the Study of African Economies, vol. 15(4), pages 571-602, December.
    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. Letort, Elodie & Carpentier, Alain, 2009. "Endogeneity of acreage choices in input allocation equations: implied problems and a solution," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49217, Agricultural and Applied Economics Association.
    2. Louhichi, Kamel & Jacquet, Florence & Butault, Jean Pierre, 2012. "Estimating input allocation from heterogeneous data sources: A comparison of alternative estimation approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(2), pages 1-20.
    3. Channing Arndt & Sam Jones & Finn Tarp, 2006. "Aid and Development: The Mozambican Case," Discussion Papers 06-13, University of Copenhagen. Department of Economics.
    4. Steven Sexton & David Zilberman, 2011. "Land for Food and Fuel Production: The Role of Agricultural Biotechnology," NBER Chapters, in: The Intended and Unintended Effects of US Agricultural and Biotechnology Policies, pages 269-288, National Bureau of Economic Research, Inc.
    5. Steven Sexton & David Zilberman, 2011. "How Agricultural Biotechnology Boosts Food Supply and Accomodates Biofuels," NBER Working Papers 16699, National Bureau of Economic Research, Inc.
    6. Mueller, Marc, 2004. "Where Has All The Water Gone? Estimation Of A Production Function For The Agricultural Sector In The Region Khorezm, Uzbekistan," 2004 Annual meeting, August 1-4, Denver, CO 20106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Somwaru, Agapi & Valdes, Constanza, 2004. "Brazil's Beef Production and Its Efficiency: A Comparative Study of Scale Economies," Conference papers 331294, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Letort, Elodie & Carpentier, Alain, 2010. "Variable Input Allocation: Why Heterogeneity Matters?," 120th Seminar, September 2-4, 2010, Chania, Crete 109387, European Association of Agricultural Economists.
    9. Minkler, Lanse & Prakash, Nishith, 2017. "The role of constitutions on poverty: A cross-national investigation," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 563-581.
    10. Arndt, Channing & Benfica, Rui & Thurlow, James, 2011. "Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique," World Development, Elsevier, vol. 39(9), pages 1649-1662, September.
    11. Asongu, Simplice & Ezeaku, Hillary, 2020. "Aid Grants vs. Technical Cooperation Grants: Implications for Inclusive Growth in Sub-Saharan Africa, 1984-2018," MPRA Paper 107528, University Library of Munich, Germany.
    12. Mark McGillivray, 2003. "Aid Effectiveness and Selectivity: Integrating Multiple Objectives into Aid Allocations," WIDER Working Paper Series DP2003-71, World Institute for Development Economic Research (UNU-WIDER).
    13. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
    14. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," The World Bank Economic Review, World Bank, vol. 22(2), pages 291-314, April.
    15. Светлов Н.М., 2016. "Эконометрический Анализ Развития Сухопутных Транспортных Сетей," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 52(2), pages 60-74, апрель.
    16. Dalgaard, Carl-Johan & Erickson, Lennart, 2009. "Reasonable Expectations and the First Millennium Development Goal: How Much Can Aid Achieve?," World Development, Elsevier, vol. 37(7), pages 1170-1181, July.
    17. José Antonio Alonso & Carlos Garcimartín, 2011. "Does Aid Hinder Tax Efforts? More Evidence," Discussion Papers 11/04, University of Nottingham, CREDIT.
    18. Jongeneel, Roelof A. & Longworth, Natasha & Huettel, Silke, 2005. "Dairy Farm Size Distribution in East and West: Evolution and Sensitivity to Structural and Policy Variables: Case-Studies of the Netherlands, Germany, Poland and Hungary," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24772, European Association of Agricultural Economists.
    19. Ana Corina Miller & Alan Matthews & Trevor Donnellan & Cathal O'Donoghue, 2011. "A 2005 Agriculture-Food SAM (AgriFood-SAM) for Ireland," The Institute for International Integration Studies Discussion Paper Series iiisdp372, IIIS.
    20. Mehadi Mamun, 2021. "The Impact of Foreign Aid Conditionality on Poverty Alleviation in Bangladesh: A Recipient’s Perspective," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 151-161, December.

    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:ags:pugtwp:331694. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.