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Title:Poverty and Inequality Impact Analysis Regarding Cotton Subsidies: A Mali-Based CGE Micro-Accounting Approach
Authors:Boccanfuso, DorothéeISNI
Savard, LucISNI
Periodical:Journal of African Economies
Geographic term:Mali
economic inequality
Agriculture, Natural Resources and the Environment
Economics and Trade
External link:https://jae.oxfordjournals.org/content/16/4/629.full.pdf
Abstract:The authors construct for Mali the first country-specific CGE (computable general equilibrium) model including a micro simulation component so as to analyse how removing cotton subsidies in developed countries would impact poverty and inequality. To that effect, they used the micro-accounting approach proposed by S. Chen and M. Ravallion (2004). The issue has attracted significant attention, as it has played no small part in stalling the broader trade agenda. So far, research has been mainly carried out with a partial equilibrium analysis, whereas the present authors use the first CGE micro-simulation model. A 17-sector CGE model comprising almost 5,000 households is used to demonstrate that removing cotton subsidies would contribute towards a significant decrease in poverty in Mali. Moreover, the results show that removing cotton subsidies while keeping other agricultural subsidies does not lessen the positive effects observed. It also appears that removing subsidies would marginally contribute towards easing inequality in Mali. Bibliogr., notes, ref., sum. [Journal abstract]