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La résilience de l'économie sénégalaise : Quelles politiques publiques en réponses aux chocs exogènes?
[Resillience of the senegalese economy; What policy responses to exogenous shocks?]

Author

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  • Diagne, Youssoupha Sakrya
  • Thiam, Dame

Abstract

This paper aims at finding appropriate policies to help maintain long run growth performances in Senegal. Usual shocks faced by the economy include that the economy rain shortfalls, oil and food prices and food, and raw materials prices. The economy is submitted to those adverse conditions using a multisector DSGE. Results show that a 36% decrease in rainfall would require18% additional spending in agriculture. Furthermore, increasing public infrastructures in oil refinery by 83% would helpovercome a 20% oil shock. Results also show a high sensitivity of the economy to changes in raw materials prices. Therefore,the paper recommends export diversification. Finally, a 4% regular increase of primary and secondary sectors’ Total Factor Productivity (TFP) would help reach a structural change of the economy.

Suggested Citation

  • Diagne, Youssoupha Sakrya & Thiam, Dame, 2020. "La résilience de l'économie sénégalaise : Quelles politiques publiques en réponses aux chocs exogènes? [Resillience of the senegalese economy; What policy responses to exogenous shocks?]," MPRA Paper 114018, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114018
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    References listed on IDEAS

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    More about this item

    Keywords

    resilience; DSGE; productivity; rainfall; world price; structural transformation;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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