Empirical Analysis

Abstract

This chapter presents empirical findings of current economic and social situation in selected Caribbean countries and demonstrates potential benefits of food self-reliance strategy. Main findings suggest that from 1995 to 2012, total food imports increased by 157 per cent. On average 83 per cent of available domestic food is imported. Potential economic and social benefits of food self-sufficiency strategy are analysed under assumption of 10 per cent import replacement of major imported commodities (meat, fresh fruits and vegetables) with local produce. Replacing just 10 per cent of imported commodities, selected countries could save approximately US$63.1 million per year. Based on economic multiplier effect, US$63.1 million of savings at the regional level would generate an economy-wide impact of an additional US$123.8 million in sales, US$33.8 million in earnings, US$4.4 million in state tax revenues. Moreover, increasing food self-sufficiency will create more than 126,000 jobs in the region.