Forest plantation development, poverty, and inequality in Laos: A dynamic CGE microsimulation analysis

Somvang Phimmavong and Rodney J. Keenan

Forest Policy and Economics, 2020, vol. 111, issue C

Abstract: Lao People's Democratic Republic (hereafter Lao PDR or Laos) has implemented policies to expand plantations on the basis of their contribution to economic development, improvement of local livelihoods, poverty alleviation, developing linkages between the processing industry and smallholder growers, and improving environmental outcomes. Despite the significant inflow in foreign investment in forest plantations, few studies have attempted to analyse the contribution of foreign investment to income distribution and poverty. This paper uses a top-down macro-micro economic modelling framework to assess the impacts of plantation development policies on poverty and inequality in Laos. The results revealed that welfare and inequality would increase while poverty incidence would decrease. These results can be used to improve policies for economic development and poverty alleviation.

Keywords: Dynamic CGE model; Microsimulation; Income distribution; Poverty; Plantation; Forestry; Laos (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:111:y:2020:i:c:s1389934119303387

DOI: 10.1016/j.forpol.2019.102055

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