Globalisation and poverty in Senegal: a worst case scenario?

Abstract

There is no consensus about how globalisation – trade and foreign investments – affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalisation and poverty by analysing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a ‘worst-case scenario’. Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation and vertical integration and complete exclusion of smallholder suppliers. We analyse and quantify income and poverty effects under these ‘worst-case conditions’ and find significant positive welfare impacts through employment creation and labour market participation. , Oxford University Press.