Thumbnail Image

Local economy impacts and cost-benefit analysis of social protection and agricultural interventions in Malawi

Year of publication 2019

Place of publication Rome, Italy ;

Pages 95 p.

Author Kagin, J. , Taylor, J. E. , Pellerano, L. , Daidone, S. , Juergens, F. , Pace, N. , Knowles, M.

Publisher FAO ;

Product type Journal, magazine, bulletin

ISBN 978-92-5-131414-2

Edition 1

Synopsis (short abstract) Using rural economy-wide impact simulation methods and cost-benefit analysis, this study examines the impacts of individual and combined social protection and agricultural interventions in Malawi on incomes, poverty and production. The goal of this analysis is to provide evidence on policy options to increase coordination and coherence between social protection and agricultural programmes, with the objective of reducing poverty, increasing incomes and enhancing agricultural production and productivity. Impacts of interventions on targeted households can be estimated using experimental or quasi-experimental methods, but there are little rigorous evaluations available on the impacts of Malawi’s social protection and agricultural interventions. Therefore, to estimate the impacts of a range of policy options for standalone and combined interventions, the study uses micro-data from household surveys to model the production of targeted and non-targeted households in rural Malawi, as well as their impacts on poverty and inequality. Research shows that significant income gains in rural areas can extend beyond the direct beneficiary households, as a result of consumption and other local linkages. Given the income gained by these vulnerable households, and its multiplier effects in local economies, the result could be substantial benefits for ineligible households living in the local economy. It is quite possible that the impacts of these programmes on communities as a whole are larger than the direct impact originating from interventions directly targeted to the beneficiaries themselves. The analytical approach taken in this paper makes it possible to quantify the impacts of a range of social protection and agricultural interventions on households living in Malawi’s rural economy, which are usually missed by other types of (programme) evaluations. These economy-wide impacts are then used to undertake an economy-wide cost-benefit analysis of individual or combined interventions.

Language English

Also available in:
No results found.

Related items

Showing items related by metadata.

  • Thumbnail Image
    Brochure, flyer, fact-sheet
    Cost-benefit analysis for climate change adaptation policies and investments in agriculture 2018
    Also available in:
    No results found.
    This briefing note illustrates the role and logic of Cost-Benefit Analysis (CBA) in the evaluation of climate change adaptation policies and projects in the agricultural sector and describes the main analytical steps for conducting it, providing practical examples. The note describes the standard CBA methodology but highlights the peculiarities related to its implementation in the context of climate change adaptation in agriculture. It is a knowledge product on CBA within the Integrating agriculture in National Adaptation Plans (NAP–Ag) Programme.
  • Thumbnail Image
    Document
    WinDASI: A Software for Cost-Benefit Analysis of Investment Projects. Installation Note   2005
    Also available in:
    No results found.
    This module contains the WinDASI software and a note that illustrates how to carry out the installation of WinDASI on your personal computer. WinDASI is a software for Cost-benefit Analysis (CBA) of investment projects that allows the analysis of the financial and economic viability of investments. In particular, it facilitates the systematic storage of data for Cost-Benefit Analysis and allows to calculate: a) flows of physical quantities of outputs, inputs and investment items; b) flows of cur rent, discounted and cumulative costs, benefits, and net benefits; c) flows of incremental (With-Without project) current, discounted and cumulative net benefits; and e) indicators of financial and economic viability such as the Net Present Value (NPV), the Internal Rate of Return (IRR), the Benefit/Cost Ratio, (BCR), the Switching Values (SVs) and Sensitivity tests. Instructions are provided on how to carry out calculations for the different components of an investment project, notably: plans, zones and projects (i.e. at different levels of aggregation). In addition, the software can deal with comparisons of different projects and alternative scenarios (e.g. with–project versus without-project), and normal and phased modes of calculation.
  • Thumbnail Image
    Document
    WinDASI: a Software for Cost-Benefit Analysis of Investment Projects. Calculations Performed by the Software  2005
    Also available in:
    No results found.
    This module illustrates how to carry out cost-benefit calculations of investment projects in WinDASI, after data are inserted in the database. It explains, by means of a step-by step procedure, how to calculate: a) flows of physical quantities of outputs, inputs and investment items; b) flows of current, discounted and cumulative costs, benefits, and net benefits; c) flows of incremental (With-Without project) current, discounted and cumulative net benefits; and e) project indicators such as the Net Present Value (NPV), the Internal Rate of Return (IRR), the Benefit/Cost Ratio, (BCR), the Switching Values (SVs) and Sensitivity Analysis. Instructions are provided on how to carry out calculations for the different components of an investment project, notably: plans, zones and projects (i.e. at different levels of aggregation). In addition, this module addresses normal and phased mode of calculation and comparisons of different projects alternative scenarios (with–project versus without-p roject).
Show more

Users also downloaded

Showing related downloaded files

No results found.