GM Food Crop Technology: Implications For Sub-Saharan Africa

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GM Food Crop Technology: Implications For Sub-Saharan Africa

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Anderson, Kym
Jackson, Lee Ann

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Kym Anderson

Abstract

The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of unskilled labourers in developing countries. This Paper analyses empirically the potential economic effects of adopting both types of innovation in Sub-Saharan Africa (SSA). It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the welfare gains are potentially very large, especially from golden rice, and that those benefits are diminished only slightly by the presence of the European Union’s current ban on imports of GM foods. In particular, if SSA countries impose bans on GM crop imports in an attempt to maintain access to EU markets for non-GM products, the loss to domestic consumers due to that protectionism boost to SSA farmers is far more than the small gain in terms of greater market access to the EU.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4490.

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Date of creation: Jul 2004
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Handle: RePEc:cpr:ceprdp:4490

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

This paper has been announced in the following NEP Reports:

NEP-AFR-2005-02-13 (Africa)
NEP-ALL-2005-02-13 (All new papers)
NEP-CMP-2005-02-13 (Computational Economics)
NEP-REG-2005-02-13 (Regulation)

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