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Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

Goedele Van den Broeck, Johan Swinnen () and Miet Maertens

Food Policy, 2017, vol. 66, issue C, 97-107

Abstract: This paper presents panel data evidence on the impact of expansion of global value chains and large-scale export-oriented farms in developing countries over almost a decade. We estimate the income effects of wage employment on large-scale farms in the horticultural export sector in Senegal, using data from two survey rounds covering a seven-years period of rapid expansion of the sector. We estimate average income effects as well as heterogeneous income effects, using fixed effects and quantile fixed effects regressions. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector is associated with higher household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.

Keywords: Globalization; High-value supply chains; Rural wage employment; Quantile regression; Panel data; Long-term effects (search for similar items in EconPapers)
JEL-codes: F16 J14 O19 Q17 R23 (search for similar items in EconPapers)
Date: 2017
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Related works:
Working Paper: Global Value Chains, Large-Scale Farming, and Poverty: Long-Term Effects in Senegal (2016) Downloads
Working Paper: Global value chains, large-scale farming, and poverty: long-term effects in Senegal (2016) Downloads
Working Paper: Global Value Chains, Large-Scale Farming, and Poverty: Long-Term Effects in Senegal (2016) Downloads
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