SOCIAL ACCOUNTING MATRIX APPLIED TO RURAL POPULATIONS (MCSAP) TO ANALYZE THE FIGHT AGAINST POVERTY

Abstract

Based on a multisectors approach, this document set upaggregated restricted social accounting matrix of 10villages in Mexico. This paper, analyze the effects of anexogenous increase in the product equivalent to 100 pesosper capita onto the rural households’ income and reducingpoverty. Furthermore migration and the salaried work therural households perform five productivity activities:commercial agriculture, livestock, staple crops, forestry andfirewood gathering, and commerce and services. On thebasis of three simulations we are to obtain that the impacton the income and reduction of poverty of the ruralhouseholds of an external injection depends of the activityto which it is applied; the dimension of the accountingmultipliers depends on the participation and of the linkagesof each activity on the local and external economy. The results show that the commerce and services (1.75 to 2.28), staple crops (1.36 to 2.21), and livestock (1.36 to 1.84)present the largest multiplier effects.

Keywords

• social accounting matrix
• exogenous injection
• accounting multipliers
• households
• poverty