External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi

Two sets of issues loom large on the economic horizon of Malawi: poverty alleviation and the country’s vulnerability to shocks emanating from the outside world. In this paper, simulations with a Computable General Equilibrium (CGE) model of Malawi are used to analyze aspects of these issues. Two typ...

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Autores principales: Lofgren, Hans, Chulu, Osten, Sichinga, Osky, Simtowe, Franklin, Tchale, Hardwick, Teska, Ralph, Wobst, Peter
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2001
Materias:
Acceso en línea:https://hdl.handle.net/10568/155840
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author Lofgren, Hans
Chulu, Osten
Sichinga, Osky
Simtowe, Franklin
Tchale, Hardwick
Teska, Ralph
Wobst, Peter
author_browse Chulu, Osten
Lofgren, Hans
Sichinga, Osky
Simtowe, Franklin
Tchale, Hardwick
Teska, Ralph
Wobst, Peter
author_facet Lofgren, Hans
Chulu, Osten
Sichinga, Osky
Simtowe, Franklin
Tchale, Hardwick
Teska, Ralph
Wobst, Peter
author_sort Lofgren, Hans
collection Repository of Agricultural Research Outputs (CGSpace)
description Two sets of issues loom large on the economic horizon of Malawi: poverty alleviation and the country’s vulnerability to shocks emanating from the outside world. In this paper, simulations with a Computable General Equilibrium (CGE) model of Malawi are used to analyze aspects of these issues. Two types of poverty-alleviating domestic policy shifts are simulated: a public works program and a land reform program. The public works program may function as an absorber of negative shocks elsewhere in the economy. The land reform program may introduce a structural change in the distribution of factor incomes in favor of the poor. The results for the simulated external shocks confirm that Malawi’s economy is highly sensitive to external shocks of the magnitudes that the country has experienced in recent years. The consequences are particularly negative for the non-agricultural population. A more diversified production and export structure would make Malawi less vulnerable to external price shocks and reduce the pressures that lead to sharp exchange rate fluctuations.
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spelling CGSpace1558402025-11-06T06:21:18Z External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi Lofgren, Hans Chulu, Osten Sichinga, Osky Simtowe, Franklin Tchale, Hardwick Teska, Ralph Wobst, Peter poverty alleviation economic situation equilibrium theory agriculture computable general equilibrium models Two sets of issues loom large on the economic horizon of Malawi: poverty alleviation and the country’s vulnerability to shocks emanating from the outside world. In this paper, simulations with a Computable General Equilibrium (CGE) model of Malawi are used to analyze aspects of these issues. Two types of poverty-alleviating domestic policy shifts are simulated: a public works program and a land reform program. The public works program may function as an absorber of negative shocks elsewhere in the economy. The land reform program may introduce a structural change in the distribution of factor incomes in favor of the poor. The results for the simulated external shocks confirm that Malawi’s economy is highly sensitive to external shocks of the magnitudes that the country has experienced in recent years. The consequences are particularly negative for the non-agricultural population. A more diversified production and export structure would make Malawi less vulnerable to external price shocks and reduce the pressures that lead to sharp exchange rate fluctuations. 2001 2024-10-24T12:42:40Z 2024-10-24T12:42:40Z Working Paper https://hdl.handle.net/10568/155840 en Open Access application/pdf International Food Policy Research Institute Lofgren, Hans; Chulu, Osten; Sichinga, Osky; Simtowe, Franklin; Tchale, Hardwick; Teska, Ralph; Wobst, Peter. 2001. External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi. TMD Discussion Paper 71. https://hdl.handle.net/10568/155840
spellingShingle poverty alleviation
economic situation
equilibrium theory
agriculture
computable general equilibrium models
Lofgren, Hans
Chulu, Osten
Sichinga, Osky
Simtowe, Franklin
Tchale, Hardwick
Teska, Ralph
Wobst, Peter
External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title_full External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title_fullStr External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title_full_unstemmed External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title_short External shocks and domestic poverty alleviation: simulations with a CGE model of Malawi
title_sort external shocks and domestic poverty alleviation simulations with a cge model of malawi
topic poverty alleviation
economic situation
equilibrium theory
agriculture
computable general equilibrium models
url https://hdl.handle.net/10568/155840
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