Agriculture-led growth: foodgrains versus export crops in Madagascar

Abstract

This article compares the growth-generating power of alternative agricultural development strategies in Madagascar. Projections from a semi-input-output model and a recently developed social accounting matrix suggest that both paddy and export crops stimulate strong linkages with other sectors of the Malagasy economy. But since paddy output can be increased at lower cost, investment in rehabilitating small irrigated rice perimeters generates 40% to 100% more GOP than a comparable investment in coffee production. Paddy also generates greater employment and a more equitable income distribution.

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