Do global cotton subsidies affect the Malian economy? New evidence from a multimarket-general equilibrium model

Fousseini Traore ()

Economics Bulletin, 2012, vol. 32, issue 2, 1640-1652

Abstract: The impact of the United States' and the European Union's subsidies on world cotton price has been an important subject in recent years. This paper examines the impact that the removal of these subsidies would have on Malian economy (GDP, public accounts, and households' income). The issue is addressed with a multimarket-computable general equilibrium model detailing the Malian cotton sector. The results show a positive impact on GDP as well as on households and government incomes. These results are robust to systematic sensitivity analysis taking into account parameter uncertainty.

Keywords: cotton; subsidies; Mali; general equilibrium. (search for similar items in EconPapers)
JEL-codes: Q0 Q1 (search for similar items in EconPapers)
Date: 2012-06-01
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