Welfare effects of the Franc CFA devaluation in Benin

This study evaluates the welfare impact of the FCA Franc devaluation in Benin by combining an empirical historical analysis of some welfare indicators with simulation results obtained with a recursive agricultural sector model. Results show an improvement of the welfare of a portion of the rural population, mainly the cotton producers, and the deterioration of urban consumers welfare in terms of caloric intake, especially of low income urban population. The analysis shows that other externalities such as increased export to neighbouring countries and traders speculative strategy, magnify the impact on producers and consumers (Résumé de l'auteur