Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279540 
Year of Publication: 
2023
Series/Report no.: 
Kiel Working Paper No. 2258
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
This study investigates regional development and internal migration dynamics within the context of modern structural transformation in Sub-Saharan Africa. We develop a regionalized Computable General Equilibrium model that incorporates regionalized production, endogenous interregional migration, and distinct migrant households. Using this model, we simulate the structural transformation of Senegal as a case study. Our findings demonstrate that agricultural stagnation, exacerbated by global climate change, underlies the economic underperformance of rural regions and amplifies regional income disparities. Furthermore, our analysis shows that outmigration from stagnating rural provinces to a more developed capital region positively influences overall economic growth and mitigates regional income inequality. Nevertheless, these effects are limited, and a proactive approach to addressing income inequality across the nation's regions would require supporting agriculture, as it represents a more equitable policy than promoting nonagricultural sectors in both rural and capital regions.
Subjects: 
structural transformation
CGE modeling
deagrarianization
internal migration
regional development
JEL: 
D58
C68
Q54
O18
Document Type: 
Working Paper

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