By Chrstopher L. Delgado, Jane Hopkins, Valerie A. Kelly
How a lot additional internet source of revenue development should be had in rural parts of Africa via expanding the spending strength of neighborhood families? the reply depends upon how rural families spend increments to source of revenue, no matter if the goods wanted could be imported to the neighborhood sector in accordance with elevated call for, and, if now not, even if elevated call for will bring about new neighborhood creation or just to cost rises. for each buck in new farm source of revenue earned, no less than one additional-tional buck might be discovered from progress multipliers, in keeping with Agricultural progress Linkages in Sub-Saharan Africa, study record 107, through Christopher L. Delgado, Jane Hopkins, and Valerie A. Kelly, with Peter Hazell, Anna A. McKenna, Peter Gruhn, Behjat Hojjati, Jayashree Sil, and Claude Courbois.
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Extra info for Agricultural Growth Linkages in Sub-Saharan Africa
Therefore, it is reasonable to wonder whether some segments of the population have persistently higher contributions to growth multipliers. Is multiplier-type growth 21 more likely to be concentrated among lower-income and smaller-sized farm households, or are higher-income, larger-sized farms more conducive to growth linkages? Poor people in both Africa and Asia tend to spend a large share of their incomes and increments to income on basic starchy staples. These goods are produced locally and in most cases are labor-intensive.
In the Muda study, for example, all locally produced nonfoods were classified as nontradable, and the only foods classified as nontradable were dairy products and food preparations. It should be noted that this classification makes for a close congruence between the earlier concern for agricultural versus nonagricultural linkages and the more recent interest in tradables versus nontradables. The numerical results for multipliers in Hazell and Röell (1983) and Haggblade, Hazell, and Brown (1987) depend on extending to Africa two key assumptions made in the previous Asian literature.
This mainly boils down to whether rice imported from the world market is a good substitute for millet and sorghum. In Senegal, in particular, coarse grains are seldom imported as food. Rice accounts for an especially large share of staple food consumption in Senegal, and most of it is imported from the world market. However, the correlation between retail prices for rice and coarse grains is low. This is only partly the result of policy interventions that stabilize rice prices but not coarse grain prices.