Globalization and Poverty in Senegal: A Worst Case Scenario?

Miet Maertens, Liesbeth Colen and Johan Swinnen

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: There is no consensus about how globalization -trade and foreign investments ?affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalization and poverty by analyzing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a "worst-case scenario? Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation and vertical integration and complete exclusion of smallholder suppliers. We analyze and quantify income and poverty effects under these "worst-case conditions?and find significant positive welfare impacts through employment creation and labor market participation.

Keywords: trade; FDI; poverty; vertical coordination; modern supply chains (search for similar items in EconPapers)
JEL-codes: F2 J43 O12 Q12 Q17 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-afr and nep-dev
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Citations: View citations in EconPapers (22)

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http://www.econ.kuleuven.be/licos/publications/dp/dp217.pdf

Related works:
Journal Article: Globalisation and poverty in Senegal: a worst case scenario? (2011)
Working Paper: Globalization and Poverty in Senegal: A Worst Case Scenario? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:21708

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