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Economy-Wide Impacts of Technological Change in the Agro-food Production and Processing Sectors in Sub-Saharan Africa

Author

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  • Ehui, Simeon K.
  • Delgado, Christopher L.

Abstract

Processing of meat and crops accounts for a large share of manufacturing in Sub-Saharan Africa (SSA). The paper assesses empirically the impact of hypothesized productivity change in agro-food processing on growth, trade, employment, and input and output prices in SSA, using a 13 commodity, 7 region version of the Global Trade Analysis Project (GTAP) applied general equilibrium model with a 1995 database. Results are compared to impacts of factor-neutral and biased technical change in primary agricultural production-- grains, non-grain crops, and livestock--overall and with respect to the agrofood sector itself. A given percentage increase in total factor productivity in primary agricultural production is shown by every criterion to have much greater favorable impacts than the same increase in any form of technical change in processing, even when consideration is given only to the welfare of people in the agro-food processing sector itself. Technological change in the non-grain high value agricultural sectors such as horticulture and livestock are second-best, but still powerful promoters of increased welfare. However, the paper is not able to assess the costs or likelihood of securing different kinds of technical change, and therefore comparisons are limited to the benefit side.

Suggested Citation

  • Ehui, Simeon K. & Delgado, Christopher L., 1999. "Economy-Wide Impacts of Technological Change in the Agro-food Production and Processing Sectors in Sub-Saharan Africa," MSSD Discussion Papers 99868, CGIAR, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:ags:iffp11:99868
    DOI: 10.22004/ag.econ.99868
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    References listed on IDEAS

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    1. John A.L. Cranfield & Thomas W. Hertel & James S. Eales & Paul V. Preckel, 1998. "Changes in the Structure of Global Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1042-1050.
    2. Hertel, Thomas W & Masters, William A & Elbehri, Aziz, 1998. "The Uruguay Round and Africa: A Global, General Equilibrium Analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 7(2), pages 208-236, July.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Narayanan, Sudha & Gulati, Ashok, 2002. "Globalization and the smallholders: a review of issues, approaches, and implications," MTID discussion papers 50, International Food Policy Research Institute (IFPRI).

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