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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Economic Growth, Income Distribution and Agricultural Policy in Malawi
Authors:Sahn, David E.ISNI
Van Frausum, YvesISNI
Periodical:Journal of African Economies
Geographic term:Malawi
price policy
agricultural products
agricultural policy
Economics and Trade
Politics and Government
Agriculture, Natural Resources and the Environment
Development and Technology
External link:https://jae.oxfordjournals.org/content/3/3/412.full.pdf
Abstract:Malawi's weak economic performance during the 1980s occurred in part due to the failure to reform agricultural pricing policies. This paper uses an econometric model to show that the continuation of high levels of taxation on smallholder exports slowed the growth of the economy and hurt poor, land-constrained smallholders with less than 1.5 hectares of land. While a policy of adhering to border prices is therefore commended, the model also shows that raising minimum wages in the absence of productivity gains will erode the benefits of price liberalization. Furthermore, price policy reforms need to be accompanied by broader institutional reforms, particularly those aimed at breaking down the imposed market segmentation between estate producers and smallholders. App., bibliogr., notes, ref., sum.