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Agricultural growth linkages in subsaharan

The objective of this report is to demonstrate the ex tent of link ages be between farm and nonfarm sectors and between non tradable and tradable goods sectors inSub- Saharan Africa and to illustrate how these link ages can shape and accelerate rural economic growth. The farm sector is de fined here to include all unprocessed agricultural goods, such as raw crops and live stock. Eve ry thing else, including processed farm items, is counted in the nonfarm sector. The term “non tradable” is used for goodsthat at prevailing relative prices are rarely, if ever, traded across the borders of the chosen zone of analysis. Nontradables also must not have close tradable substitutes thatare available locally. This implies that the domestic price of the non traded good is not likely to be well correlated with the domestic price of any tradable good that could play the same role in the con sump ion basket. By convention, services are always nontradables, since the service is completely per formed locally, and it can neither be imported nor ex ported. Perish able foods are often non tradable because of the risk of loss in transit. Tradables, on the other hand, can in the oryal ways be imported or exported data constant price de termined by a reference market outside the region in question.



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