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Distortions to Agriculture and Economic Growth in Sub-Saharan Africa

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  • Kym Anderson
  • Markus Bruckner

Abstract

A new set of estimates of policy induced distortions to relative prices is used to examine how they affect economic growth. We find that on impact there is no significant response of relative agricultural price distortions to changes in real GDP per capita growth of Sub-Saharan African countries. By contrast, we find a statistically significant and sizable negative effect of relative agricultural price distortions on growth. Our fixed effects estimates suggest that, during 1960-2005, a ten percentage point increase in distortions to relative prices decreased the region's real GDP per capita growth rate by half a percentage point per annum.

Suggested Citation

  • Kym Anderson & Markus Bruckner, 2012. "Distortions to Agriculture and Economic Growth in Sub-Saharan Africa," Departmental Working Papers 2012-06, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2012-06
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    Cited by:

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    3. Murat Ungor, 2017. "Productivity Growth and Labor Reallocation: Latin America versus East Asia," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 25-42, March.
    4. Catherine Komugisha Tindiwensi & Eunice Kabahinda & Fiona Aikiriza & Sylvia Aarakit, 2023. "Entrepreneurial passion and entrepreneurial farming among youth agripreneurs in Uganda," SN Business & Economics, Springer, vol. 3(7), pages 1-23, July.
    5. Abel Tiemtore, 2021. "Examining the effects of agricultural income insurance on farmers in Burkina Faso," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 422-439, July.
    6. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, November.
    7. Tony Addison & Atanu Ghoshray & Michalis P. Stamatogiannis, 2016. "Agricultural Commodity Price Shocks and Their Effect on Growth in Sub-Saharan Africa," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 47-61, February.

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    More about this item

    Keywords

    Economic growth; Trade restrictions; Agricultural incentives;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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