GTAP Resources: Resource Display
| GTAP Resource #4472 |
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"The Impact of Social Protection on the Local Economy: Results from a Computable General Equilibrium Analysis for Cambodia" by Levy, Stephanie Abstract Providing safety nets to the poor is part of the agenda of most developing countries. When poverty incidence is high, providing a significant share of the population with social transfers implies substantial mobilization of resources for the government. It also implies that a large injection of funds will flow into the economy and reach a population that will mostly consume the transfer they receive. This rise in household’s consumption will increase demand for all sorts of goods and services and will have different economic impact whether it reaches markets that have the elasticity needed to respond efficiently and rapidly enough to prevent prices from increasing. Lack of market integration, which is characteristic of remote areas and rural villages where social protection programs are particularly needed, implies that such a rise in household demand for goods and services could generate price effects and hence compromise the benefit of the measure for both recipients, whose real income might not increase as expected, and non-recipients who will see their purchasing power affected. Rising prices may also induce increased imports, hereby lessening the potential benefit to domestic producers which is often referred to in relation to the economic impact of social transfers (Barrientos 2012, Dercon 2011). Such risks could therefore potentially reduce the efficiency of cash transfer policies. The potential impact of cash transfers on the local economy thus needs to be thoroughly analyzed, understood and taken into consideration in policy design. From the point of view of policy makers with limited, typically scare, funding capacity, it is essential to understand what economic impact social protection is likely to have on prices and on the local economy where such measures are likely to be carried out. Implementing such policies in the context of countries with high poverty incidence requires major fiscal efforts and governments usually demand evidence based ... |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Baseline development - Economic analysis of poverty - Economic development - Economic growth - Health - Agricultural policies - Domestic policy analysis - Asia (Southeast) |
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Public Access  GTAP Resource 4472 (842.3 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
