TY  - JOUR
AU  - Balat,Jorge F.
AU  - Porto,Guido
TI  - Globalization and Complementary Policies: Poverty Impacts in Rural Zambia
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11175
PY  - 2005
Y2  - March 2005
UR  - http://www.nber.org/papers/w11175
L1  - http://www.nber.org/papers/w11175.pdf
N1  - Author contact info:
Jorge Balat
Johns Hopkins University
Department of Economics
Mergenthaler Hall 459
3400 N. Charles St.
Baltimore, MD 21218
Office Phone: (410) 516-5767
E-Mail: jorge.balat@jhu.edu

Guido Porto
Calle 6 entre 47 y 48
Departamento de Economía
Universidad Nacional de La Plata
Argentina
E-Mail: guido.porto@depeco.econo.unlp.edu.ar
AB  - In this paper, we have two main objectives: to investigate the links between globalization and poverty observed in Zambia during the 1990s, and to explore the poverty impacts of non-traditional export growth. We look at consumption and income effects separately. On the consumption side, we study the maize marketing reforms and the elimination of maize subsidies. We find that complementary policies matter: the introduction of competition policies at the milling industry acted as a cushion that benefited consumers but the restriction on maize imports by small-scale mills hurt them. On the income side, we study agricultural export growth to estimate income gains from international trade. The gains are associated with market agriculture activities (such as growing cotton, tobacco, hybrid maize) and rural labor markets and wages. We find that by expanding trade opportunities Zambian households would earn significantly higher income. Securing these higher levels of well-being requires complementary policies, like the provision of infrastructure, credit, and extension services.
ER  -