OECD Development Centre Working Papers

The OECD Development Centre links OECD members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. This series of working papers is intended to disseminate the OECD Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language.

English, French

Poverty Reduction Strategies in a Budget-Constrained Economy

The Case of Ghana

Analyses of responses to reforms in Ghana seem to indicate that current policies may be benefiting different segments of society disproportionately. Also, experience in the 1990s suggests that recurring budget deficits may adversely affect reform and poverty alleviation programmes. The aim of this paper is to carry out some experiments using variants of a stylised CGE model, to ascertain the possible effects on poverty of a range of budget-neutral redistributive income transfers. The analysis is based on a social accounting matrix (SAM) for Ghana for the year 1993, which has been substantially modified for the present application. The CGE model is a real-side, static model and therefore excludes the monetary and financial sectors and is designed in the tradition of other OECD Development Centre models. The experimental design follows one employed by Adelman and Robinson (1978) for Korea, and Chia et al. (1992) for the Côte d’Ivoire. However the experiments are designed with a view ...


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