EconPapers    
Economics at your fingertips  
 

Modeling the Distributive Effects of an Agricultural Shock on Household Income in South Africa: A Sam Multiplier Decomposition and Structurel Path Analysis

Julius Mukarati () and Godswill Makombe ()
Additional contact information
Julius Mukarati: School of Economics and Management, University of Limpopo, 0727 Polokwane, South Africa.
Godswill Makombe: Turfloop Graduate School of Leadership (TGSL), University of Limpopo, 0727 Polokwane, South Africa.

Journal of Economics Bibliography, 2017, vol. 4, issue 1, 43-55

Abstract: Natural resource redistribution and ownership transfer programs are introduced as a way of improving income distribution and alleviating poverty in rural areas of most developing countries. In the case of South Africa, these redistributive policies are implemented in line with the national development plan targeting extreme poverty alleviation and reduction of wide income disparities by 2030. This paper analyses the distributive effects of the land redistribution policy which is a shock in the agriculture sector on poor household income in South Africa by applying a multiplier decomposition and structural path analysis. The study contributes to the existing literature by providing a microscopic analysis of the global multiplier to show the transmission mechanism of household income from a shock into the agriculture sector and show how income moves across sectors, factors and households by dividing the multiplier effects into all its components. The results showed that poor households received higher direct effects and the rich households received high indirect effects from the shock in the agricultural sector. The structural path shows that a significant portion of the global influence of the shock in agriculture is transmitted through the path of factor income which in turn increases poor household income.

Keywords: Multiplier decomposition; Structural path analysis; Land redistribution. (search for similar items in EconPapers)
JEL-codes: I38 O13 Q15 Q18 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.kspjournals.org/index.php/JEB/article/download/1154/1218 (application/pdf)
http://www.kspjournals.org/index.php/JEB/article/view/1154 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ksp:journ6:v:4:y:2017:i:1:p:43-55

Access Statistics for this article

Journal of Economics Bibliography is currently edited by Bilal KARGI

More articles in Journal of Economics Bibliography from KSP Journals Istanbul, Turkey.
Series data maintained by Bilal KARGI ().

 
Page updated 2017-11-18
Handle: RePEc:ksp:journ6:v:4:y:2017:i:1:p:43-55