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Modeling the Distributive Effects of an Agricultural Shock on Household Income in South Africa: A Sam Multiplier Decomposition and Structurel Path Analysis

Journal of Economics Bibliography

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Title Modeling the Distributive Effects of an Agricultural Shock on Household Income in South Africa: A Sam Multiplier Decomposition and Structurel Path Analysis
 
Creator MUKARATI, Julius; PhD Student. School of Economics and Management, University of Limpopo, 0727 Polokwane, South Africa. Email: jmukarati@gmail.com
MAKOMBE, Godswill;

Turfloop Graduate School of Leadership (TGSL), University of Limpopo, 0727 Polokwane, South Africa.

. +27 (0)15 2684245 / 4141

. godswill.makombe@ul.ac.za
 
Subject Multiplier decomposition; Structural path analysis; Land redistribution.
I38; O13; Q15; Q18.
 
Description Abstract. Natural resource redistribution and ownership transfer programs are introduced as a way of improving income distribution and alleviating poverty in rural areas of most developing countries. In the case of South Africa, these redistributive policies are implemented in line with the national development plan targeting extreme poverty alleviation and reduction of wide income disparities by 2030. This paper analyses the distributive effects of the land redistribution policy which is a shock in the agriculture sector on poor household income in South Africa by applying a multiplier decomposition and structural path analysis. The study contributes to the existing literature by providing a microscopic analysis of the global multiplier to show the transmission mechanism of household income from a shock into the agriculture sector and show how income moves across sectors, factors and households by dividing the multiplier effects into all its components. The results showed that poor households received higher direct effects and the rich households received high indirect effects from the shock in the agricultural sector. The structural path shows that a significant portion of the global influence of the shock in agriculture is transmitted through the path of factor income which in turn increases poor household income.Keywords. Multiplier decomposition, Structural path analysis, Land redistribution.JEL. I38, O13, Q15, Q18.
 
Publisher Journal of Economics Bibliography
 
Contributor —
 
Date 2017-03-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEB/article/view/1154
10.1453/jeb.v4i1.1154
 
Source Journal of Economics Bibliography; Vol 4, No 1 (2017): March; 43-55
2149-2387
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEB/article/view/1154/1218
 
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