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The Journal of Economic Integration 2008 March;23(1) :104-137.
DOI: https://doi.org/10.11130/jei.2008.23.1.104
Exploring Growth Linkages and Market Opportunities for Agriculture in Southern Africa

Alejandro Nin PrattXinshen Diao

International Food Policy Research Institute
Copyright ©2008 The Journal of Economic Integration
ABSTRACT

The heterogeneity of southern African countries offers the region a unique opportunity to exploit agricultural potential and trade opportunities through regional integration. We analyze the implications of such opportunities using a regional general equilibrium model. We find that growth in South Africa benefits the region's low-income countries through increased demand for their agricultural exports, higher prices that stimulate production for domestic markets, and slower decline of prices from increased production. Agricultural productivity growth, however, is necessary for low-income countries to take advantage of South Africa's growth. The largest benefits for low-income countries result from rising productivity of grain and livestock production.

JEL classification: C68, D58, F11, F15, O33, O55, Q17, Q18

Keywords: Agriculture | Applied General Equilibrium | Growth Linkages | Productivity | Regional Integration | Southern Africa | Trade
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