Agricultural Growth and Investment Options for Poverty Reduction in the D.R.Congo: A General Equilibrium Approach?
James WY*, Jean B and Nlemfu M
Department of Economics, University of Kinshasa, Groupe MEGC, Congo
- *Corresponding Author:
- James WY
Department of Economics
University of Kinshasa
Groupe MEGC, Congo
E-mail: [email protected]
Received Date: February 12, 2016; Accepted Date: February 29, 2016; Published Date: March 02, 2016
Citation:James WY, Jean B, Nlemfu M (2016) Agricultural Growth and Investment Options for Poverty Reduction in the D.R.Congo: A General Equilibrium Approach. J Stock Forex Trad 5:168. doi:10.4172/2168-9458.1000168
Copyright: © 2016 James WY, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This paper evaluates the contribution of agricultural growth to poverty reduction in the D.R.Congo over the projection period 2013 - 2020. It raises questions over the investment options to sustain such growth effort. We use a recursive dynamic computable general equilibrium model combine with survey-based microsimulation analysis at both national and subnational levels. We assume in the simulations that additionnal growth in total factor productivity is an exogenous factor and find the following results. First, we find that 8.21% agricultural annual growth rate is more effective at reducing poverty and achieves the first MDG goal by 2020. Second, we identify agricultural investment priorities and the required levels of public spending to achieve such growth and poverty reduction goals. We further analyze the growth at the subsector level and find that cereals and roots are more pro-poor. From this perspective, agricultural strategy based on expanding foodcrops production should be afforded the highest priority.