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Beyond Experiments in Development EconomicsLocal Economy-wide Impact Evaluation$
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J. Edward Taylor and Mateusz J. Filipski

Print publication date: 2014

Print ISBN-13: 9780198707875

Published to Oxford Scholarship Online: September 2014

DOI: 10.1093/acprof:oso/9780198707875.001.0001

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Modeling the Regional Impacts of an Irrigation Project in Tanzania

Modeling the Regional Impacts of an Irrigation Project in Tanzania

11 (p.226) Modeling the Regional Impacts of an Irrigation Project in Tanzania
Beyond Experiments in Development Economics

Dale Manning

Xinshen Diao

Angga Pradesha

Oxford University Press

Irrigation projects can more than double per-acre crop yields and raise labor and other input demands, income, and consumption on the farms that get the water. As food production rises, food prices may fall, particularly in rural areas poorly integrated with outside markets. Benefits are transmitted to suppliers of labor and other inputs, food processors, and consumers. Poor households may be affected directly (if they get water) or indirectly (if their incomes increase or food costs fall). This chapter shows how to construct a model to evaluate the regional economy-wide impacts of an irrigation project. Irrigation projects in two districts of Tanzania are found to have large indirect impacts, with up to one-third of the benefits going to non-targeted households. Meanwhile, lower food prices have a slight negative effect on food producers in nearby valleys.

Keywords:   irrigation, food production, rural households, agricultural households, rural poverty, economy-wide model, value chain, market, technology, development project

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