Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211306 
Year of Publication: 
2019
Series/Report no.: 
WIDER Working Paper No. 2019/77
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
This paper considers the impact of agriculture and international trade development on income distribution and economic activity in Mozambique. A social accounting matrix multiplier decomposition model is used - in particular, an extension of the standard model that details the process of income distribution through the economy's institutions. When we focus on the impact on rural low-income households, the emphasis is on the food crop and food-processing sectors. The results suggest surprisingly that such households do not benefit much from exogenous increases in agricultural crops; high-income rural and urban households benefit more. A full decomposition of the multipliers suggests that rural low-income households link strongly to food-processing, but that the latter is not very prominent in the Mozambican economy due to high import penetration. The second focus is therefore on international trade, which reveals that the high rates of imports regarding food-processing are mainly sourced from South Africa.
Subjects: 
Agriculture
income distribution
multipliers
multiplier decomposition
social accounting matrix
structure of production
trade
JEL: 
C67
D31
D33
Q17
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-711-8
Document Type: 
Working Paper

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