Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications

Some agricultural investments are commodity-specific, meaning that they increase the productivity of production, processing, or marketing of a single agricultural commodity or a set of closely-related commodities. Examples include investment in cassava breeding, expanding cotton ginning capacity, ir...

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Autores principales: Martin, Will, Minot, Nicholas
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/143359
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author Martin, Will
Minot, Nicholas
author_browse Martin, Will
Minot, Nicholas
author_facet Martin, Will
Minot, Nicholas
author_sort Martin, Will
collection Repository of Agricultural Research Outputs (CGSpace)
description Some agricultural investments are commodity-specific, meaning that they increase the productivity of production, processing, or marketing of a single agricultural commodity or a set of closely-related commodities. Examples include investment in cassava breeding, expanding cotton ginning capacity, irrigation for rice production, expansion of cold storage capacity for horticultural exports, or road investment to a region whose main product is maize. Traditional cost-benefit analysis estimates the effect of in-vestments on net income assuming that the investment is not large enough to influence market prices. However, a different approach is needed when the investment affects market prices and/or there is an interest in other outcomes such as poverty reduction. This report describes an approach to estimating the impact of commodity-specific agricultural investments on income, poverty, and other measures of welfare. This approach can be extended to identify the optimal allocation of an investment budget across commodities subject to a given objective function. For example, it could be used to allocate agricultural research funds across commodities to maximize income, poverty reduction, or a weighted average of the two.
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spelling CGSpace1433592025-11-06T07:14:50Z Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications Martin, Will Minot, Nicholas income models economic growth investment commodities welfare agriculture poverty Some agricultural investments are commodity-specific, meaning that they increase the productivity of production, processing, or marketing of a single agricultural commodity or a set of closely-related commodities. Examples include investment in cassava breeding, expanding cotton ginning capacity, irrigation for rice production, expansion of cold storage capacity for horticultural exports, or road investment to a region whose main product is maize. Traditional cost-benefit analysis estimates the effect of in-vestments on net income assuming that the investment is not large enough to influence market prices. However, a different approach is needed when the investment affects market prices and/or there is an interest in other outcomes such as poverty reduction. This report describes an approach to estimating the impact of commodity-specific agricultural investments on income, poverty, and other measures of welfare. This approach can be extended to identify the optimal allocation of an investment budget across commodities subject to a given objective function. For example, it could be used to allocate agricultural research funds across commodities to maximize income, poverty reduction, or a weighted average of the two. 2021-11-01 2024-05-22T12:13:36Z 2024-05-22T12:13:36Z Working Paper https://hdl.handle.net/10568/143359 en Open Access application/pdf International Food Policy Research Institute Millennium Challenge Corporation Martin, Will and Minot, Nicholas. 2021. Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications. IFPRI – MCC Technical Paper Series: Prioritizing Agricultural Investments for Income, Poverty Reduction, and Nutrition 3. Washington, DC: International Food Policy Research Institute (IFPRI); and Millennium Challenge Corporation (MCC). https://doi.org/10.2499/p15738coll2.134800.
spellingShingle income
models
economic growth
investment
commodities
welfare
agriculture
poverty
Martin, Will
Minot, Nicholas
Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title_full Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title_fullStr Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title_full_unstemmed Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title_short Prioritizing agricultural investments across commodities for income growth and poverty reduction: Methods and applications
title_sort prioritizing agricultural investments across commodities for income growth and poverty reduction methods and applications
topic income
models
economic growth
investment
commodities
welfare
agriculture
poverty
url https://hdl.handle.net/10568/143359
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AT minotnicholas prioritizingagriculturalinvestmentsacrosscommoditiesforincomegrowthandpovertyreductionmethodsandapplications