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This paper provides econometric evidence suggesting that the traditional trade-based business cycle linkages between the North and the South have changed. Many countries in the South, particularly in Asia, appear to have become more resilient to cyclical movements in the North, and play a more significant role in sustaining global activity. A number of factors may have contributed to these changes: improved domestic policies and more open trade and exchange regimes; closer financial linkages with the North and a substantial increase in capital flows: a marked rise in intraregional trade; and greater diversification of the exports of the South.

Rapid urbanization is an important characteristic of African development and yet the structural transformation debate focuses on agriculture's relative merits without also considering the benefits from urban agglomeration. As a result, African governments are often provided conflicting recommendations on the importance of rural agriculture or urban industry. We develop dynamic economywide models for Ethiopia and Uganda that capture both traditional aspects of the debate (growth linkages and foreign trade) and benefits from urbanization (internal migration and agglomeration effects). Simulations suggest that urban agglomeration is an important source of long-term growth and structural transformation, but that investing in cities does not greatly reduce national poverty over the short-term. In this regard, agricultural growth is more effective, albeit with slower national growth. Given these trade-offs, we conclude that, while urbanization's benefits argue against an "agro-fundamentalist" approach to African development, the short-term imperative of reducing poverty necessitates further agricultural investment. [ABSTRACT FROM AUTHOR]

The rapid growth of fish farming over the past three decades has generated heated debate over the role of aquaculture in rural development and poverty reduction. Central to these debates is the question of whether and how aquaculture impacts local incomes and employment, yet little empirical evidence exists on the issue. To address this question, we propose a Local Economy-wide Impact Evaluation (LEWIE) model which nests fish farm models within a general-equilibrium model of their local economy. The model is calibrated using primary data collected from 1102 households in Myanmar’s main aquaculture zone, representative of 60% of the country’s aquaculture farms. Using this model, we examine the impact of aquaculture on the incomes and labor market outcomes of fish farming households, but also crop farms and non-farm households in the cluster. Simulating one-acre increases in pond/plot surface we find that: (1) aquaculture generates much higher incomes per-acre than agriculture; (2) aquaculture generates larger income spillovers than agriculture for non-farm households by way of retail and labor markets; (3) small commercial fish farms generate greater spillovers than large fish farms. These results bolster the notion that fish-farming, and in particular small-scale commercial aquaculture, may have a significant role to play in rural development and poverty reduction. [ABSTRACT FROM AUTHOR]