Impacts of agricultural capital subsidies for women in Burkina Faso: Lessons from a Computable General Equilibrium model

Abstract

AbstractSub‐Saharan African countries have a strong involvement of women in the agricultural sector. However, women have limited access to productive resources. A better endowment of productive resources for women is seen as a crucial option for achieving noteworthy results in terms of agricultural production, income, and economic growth and for reducing income inequalities between men and women. This study aims to analyse the potential impacts of a subsidy policy on women's agricultural capital in Burkina Faso. It makes use of a recursive dynamic computable general equilibrium model and a gendered social accounting matrix. The results indicate that the subsidy policy contributes to increasing women's income more than men's income, helping to reduce income inequality between men and women. Moreover, unemployment for women decreases significantly. Finally, the policy is conducive to economic growth regardless of the funding source.