Agriculture, Aid, and Economic Growth in Africa

dc.creatorMcArthur, John W.
dc.creatorSachs, Jeffrey D.
dc.date2020-08-06T16:20:48Z
dc.date2020-08-06T16:20:48Z
dc.date2019-02
dc.date.accessioned2026-07-01T00:31:47Z
dc.descriptionHow can foreign aid to agriculture support economic growth in Africa? This paper constructs a geographically indexed applied general equilibrium model that considers pathways through which aid might affect growth and structural transformation of labor markets in the context of soil nutrient variation, minimum subsistence consumption requirements, domestic transport costs, labor mobility, and constraints to self-financing of agricultural inputs. Using plausible parameters, the model is presented for Uganda as an illustrative case. We present three stylized scenarios to demonstrate the potential economy-wide impacts of both soil nutrient loss and replenishment, and how foreign aid can be targeted to support agricultural inputs that boost rural productivity and shift labor to boost real wages. One simulation shows how a temporary program of targeted official development assistance (ODA) for agriculture could generate, contrary to traditional Dutch disease concerns, an expansion in the primary tradable sector and positive permanent productivity and welfare effects, leading to a steady decline in the need for complementary ODA for budget support.
dc.formatapplication/pdf
dc.identifierWorld Bank Economic Review
dc.identifier1564-698X
dc.identifierhttps://hdl.handle.net/10986/34286
dc.identifier10.1596/34286
dc.identifier.urihttp://hdl.handle.net/123456789/405386
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relationWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rightsWorld Bank
dc.subjectFOREIGN AID
dc.subjectOFFICIAL DEVELOPMENT ASSISTANCE
dc.subjectECONOMIC GROWTH
dc.subjectAGRICULTURAL PRODUCTIVITY
dc.subjectRURAL PRODUCTIVITY
dc.subjectFARM PRODUCTIVITY
dc.subjectAGRICULTURE
dc.titleAgriculture, Aid, and Economic Growth in Africa
dc.typeJournal Article
dc.typeArticle de journal
dc.typeArtículo de revista

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