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Title:On the choice of appropriate development strategy: Insights from CGE modelling of the Mozambican economy PDF Logo
Authors:Tarp Jensen, Henning
Tarp, Finn
Issue Date:2001
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2001/146
Abstract:This paper makes use of a 1997 computable general equilibrium (CGE) model to analyse three potential strategies that Mozambique can pursue unilaterally with a view to initiating a sustainable development process. They include (i) an agriculture-first strategy, (ii) an agricultural-development led industrialization (ADLI) strategy, and (iii) a primary-sector export-oriented strategy. The ADLI strategy dominates the other development strategies since important synergy effects in aggregate welfare arise from including key agro-industry sectors into the agriculture-first development strategy. Moreover, the ADLI strategy can be designed so it has a relatively strong impact on the welfare of the poorest poverty-stricken households, and still maintain the politically sensitive factorial distribution of income.
Subjects:CGE modelling
development strategy
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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