Agricultural growth linkages in Madagascar

In the agricultural sector, food self-sufficiency remains an important policy objective, but investments in food crop production compete with investments in export crop production and marketing for scarce government resources. The approach used in this analysis to address strengths of alternative investment strategies in agriculture is based on the semi-input-output (ISO) model, which is built around the social accounting matrix (SAM). The multiplier effects of an increase in the output of paddy and export crops are examined; both increases were found to have strong linkages with the domestic economy. Nonetheless, increases in rice production will cost less than increases in export crops. A rice-based agricultural growth strategy is therefore recommended. A further argument for the rice strategy is that it generates greater employment and results in more equitable income distribution. (Author abstract, from Fall 1992 issue of ARTS Abstracts)