Globalization and Complementary Policies: Poverty Impacts in Rural Zambia

No 11175, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we have two main objectives: to investigate the links between globalization and poverty observed in Zambia during the 1990s, and to explore the poverty impacts of non-traditional export growth. We look at consumption and income effects separately. On the consumption side, we study the maize marketing reforms and the elimination of maize subsidies. We find that complementary policies matter: the introduction of competition policies at the milling industry acted as a cushion that benefited consumers but the restriction on maize imports by small-scale mills hurt them. On the income side, we study agricultural export growth to estimate income gains from international trade. The gains are associated with market agriculture activities (such as growing cotton, tobacco, hybrid maize) and rural labor markets and wages. We find that by expanding trade opportunities Zambian households would earn significantly higher income. Securing these higher levels of well-being requires complementary policies, like the provision of infrastructure, credit, and extension services.

JEL-codes: I32 Q12 Q17 Q18 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-afr and nep-dev
Note: ITI
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Citations: View citations in EconPapers (41)

Published as Jorge F. Balat & Guido G. Porto, 2007. "Globalization and Complementary Policies: Poverty Impacts on Rural Zambia," NBER Chapters, in: Globalization and Poverty, pages 373-416 National Bureau of Economic Research, Inc.

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Chapter: Globalization and Complementary Policies: Poverty Impacts on Rural Zambia (2007)
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