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Case Study

Making the most of it: A regional multiplier approach to estimating the impact of cash transfers on the market

2011 — By Simon Davies

This study examines the regional multiplier effect resulting from Concern’s emergency cash transfer programme in Dowa district in Malawi, which experienced a food deficit in 2006.

It uses a Reduced Social Accounting Matrix to calculate and analyse the impact of the cash transfers on different economic sectors, and the benefits for different businesses. It gives a brief review of the literature around regional multipliers, and then highlights the findings of a review of Concern’s overall food and cash transfer programme in Malawi (notably looking at market prices and the uses of the transfers) and then more specifically at prices and spending in the Dowa programme. A detailed examination and analysis of the multiplier effect for the Dowa programme is then made, ending in a number of recommendations for additional research and suggestions for future programming.