Comparative Sectoral Efficiency in the Fight Against Poverty and Unemployment in Burkina Faso

Abstract

In this paper, we construct an economy-wide recursive dynamic model for Burkina Faso to explore the impact of scaling up public capital in different aggregate sectors. While several researchers emphasize the importance for sub-Saharan African countries of giving higher priority to agriculture to stimulate economic growth and reduce poverty, some authors state that non-agricultural sectors should now receive special attention following the success achieved in some countries in South Asia. These countries have indeed applied a different paradigm: a program of economic growth and poverty reduction based on non-agricultural sectors. This study aims to provide insights into this debate. It draws from the public capital productivity literature to postulate the positive productive externalities of public investment. The results show that, with the same amount of public investment, financed by the same source, public investment in agriculture yields positive impacts that are significantly higher than those yielded by investments in non-agricultural sectors (industry and services). Added value growth in non-agricultural sectors is higher under public investment in agriculture than in non-agricultural sectors.

What are the impacts of climate change and the Ukrainian war on the sustainable development goals? A case study for Burkina Faso

“…We assume that over a given period, the total factor productivity parameter of each agricultural activity exposed to climate change conditions is a function of an exogenous annual productivity loss rate. This channel has been identified in other studies (Arndt et al, 2011; Arndt & Thurlow, 2015; Barbier & Hochard, 2018; Bosello et al, 2017; Montaud et al, 2017) and specifically in Burkina Faso (Sawadogo & Fofana, 2021; Zidouemba, 2017).…”

Climate change adaptation based on computable general equilibrium models – a systematic review

“…The examined adaptation measures in agriculture include improving irrigation and drainage system (Bosello et al , 2018; Calzadilla et al , 2013, 2014; Komarek et al , 2019; Montaud et al , 2017; Robinson et al , 2012; Zeshan and Ko, 2019; Zeshan and Shakeel, 2020; Zidouemba, 2017), improving drought early warning systems (Montaud et al , 2017), adoption of high temperature-tolerant rice varieties (Akune et al , 2015) and adoption of drought-tolerant crop varieties (Montaud et al , 2017), relocating cotton production (Mushtaq et al , 2015), adopting a rice-sugarcane rotation and displacement of sugar (Mushtaq, 2016), adopting climate-smart agriculture and doubling fertilizer use (Komarek et al , 2019).…”

“…Many of these studies conclude that the introduced planned adaptation measures can mitigate the negative impact of climate change at low cost (Hoffmann, 2019; Robinson et al , 2012; Zeshan and Ko, 2019; Zeshan and Shakeel, 2020) or receive net benefits (Calzadilla et al , 2014; Nakajima et al , 2020; Schenker and Stephan, 2014). Some studies point out that the examined adaptation measures may not be sufficient to solve the problem although helpful (Akune et al , 2015; Arndt et al , 2015; Boyd and Ibarrarán, 2009; Elshennawy et al , 2016; Ouraich et al , 2019; Zidouemba, 2017). Certain adaptation measures may only marginally mitigate climate change impact (Ouraich and Tyner, 2018).…”

“…The examined investments and funding for adaptation include agricultural sector investments (Arndt et al, 2015(Arndt et al, , 2011Bosello et al, 2018;Calzadilla et al, 2013Calzadilla et al, , 2014Elshennawy et al, 2016;Robinson et al, 2012;Zidouemba, 2017), funding of adaptation in developing regions (Ouraich and Tyner, 2018;Schenker and Stephan, 2014), coastal protection investments (Elshennawy et al, 2016;Parrado et al, 2020;Withey et al, 2016), decrease in investments in risky areas (Husby et al, 2016), utilization of insurance and catastrophic bonds (Thirawat et al, 2017), public investments in adaptation (Bachner et al, 2019;Hirte et al, 2018;Hoffmann, 2019;Hoffmann and Stephan, 2018) and adaptation measure of an artificial beach enhancement (Nakajima et al, 2020).…”

Examining the roles of labor factors, investment, and industrialization in poverty alleviation: Empirical evidence from Sumatra, Indonesia

“…If industry can only employ skilled laborers, then industrialization will not reduce poverty. Zidouemba (2021) also stated that industrialization supported by strong agriculture could reduce poverty. The hypothesis developed is:…”