Promoting intersectoral growth linkages in rural Africa through agricultural technology and policy reform

C Delgado, P Hazell, J Hopkins, V Kelly - American Journal of Agricultural …, 1994 - JSTOR
C Delgado, P Hazell, J Hopkins, V Kelly
American Journal of Agricultural Economics, 1994JSTOR
This paper addresses how increased rural incomes in select African cases are spent on
consumption items, the implications of these pat-terns for stimulating rural growth, and areas
of intervention necessary to sustain demand-led growth from improved agricultural
technology and economic reforms. The country studies uti-lize panel data collected by the
International Food Policy Research Institute (IFPRI) in col-laboration with African institutions
and re-ported elsewhere. The data cover weekly or bi-weekly panels for a full year, covering …
This paper addresses how increased rural incomes in select African cases are spent on consumption items, the implications of these pat-terns for stimulating rural growth, and areas of intervention necessary to sustain demand-led growth from improved agricultural technology and economic reforms. The country studies uti-lize panel data collected by the International Food Policy Research Institute (IFPRI) in col-laboration with African institutions and re-ported elsewhere. The data cover weekly or bi-weekly panels for a full year, covering 1984-85 in Burkina Faso (Reardon, Delgado, and Matlon), 1989-90 in Niger (Hopkins and Reardon) and Senegal (Kelly et al.), and 1985-86 in Zambia (Celis, Milimo, and Wanmali). Growth linkages are typically estimated as regional growth multipliers, which measure the extra income generated in a region from stimu-lating new production of goods and services with a stream of consumer and intermediate spending. The latter comes from new household income originating as a result of technological progress or policy changes affecting the profitability of production of rural tradables (Mellor; Bell and Hazell; Haggblade, Hammer, and
Hazell). Items that are rarely traded over the borders of the region of interest, and are not close substitutes with things that are traded, are nontradables, which by definition are demandconstrained. Growth multipliers arising from new spending come from new consumer and in-termediate demands for nontradables. Because
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