The impact pathway of our project is based on the combination of the three dimensions of trade and market access, as described in the idea of the project. First, looking at both imports and exports in a comparative approach adds to the literature that usually considers developing country agri-food exports only. The combined macro- and micro-economic analyses are innovative since the results shed light on the implications at both country and firm levels, while exploiting methodological advances in new trade theory with a micro-level underpinning and application. Simultaneous analyses of down- and up-stream links help to understand trickle-down effects within supply chains and to explore network structures.
Taking into account and integrating these dimensions of trade adds value to the existing research and standard methodologies commonly applied. While bringing forward the standard trade analysis by the innovative link of micro and macro analyses, we incorporate the granularity necessary for generating results that provide insights on the economic effects but also employment, income and welfare effects. Results will be for specific producers and groups (e.g. smallholders, women, youth), thereby providing insights on inclusiveness and equity. Given the granularity, the results of our analyses provide evidence that supports the formulation of targeted policies and programmes. Furthermore, they will point out how to improve market access by identifying which actors along the supply chain should be targeted. Our findings will help to minimize the downsides of existing trade barriers, thereby having an impact on the prevalent realities when producing/selling the respective products at the local, regional and/or international market.
Furthermore, the results will generate insights into opportunities and challenges for expanding local, regional and international trade and for improving access to agri-food markets for different types of actors. Better trade conditions, in particular for agricultural products, constitute a key component for a viable food security strategy in Africa. Ultimately, this proposal will identify policy and investment priorities in order to make agricultural trade work for improved food security.