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Marketing margins and agricultural technology in Mozambique

Author

Listed:
  • Arndt, Channing
  • Jensen, Henning Tarp
  • Robinson, Sherman
  • Tarp, Finn

Abstract

Improvements in agricultural productivity and reductions in marketing costs in Mozambique are analysed using a computable general equilibrium (CGE) model. The model incorporates detailed marketing margins and separates household demand for marketed and home-produced goods. Simulations improving agricultural technology and lowering marketing margins yield gains across the economy, but with differential impacts on factor returns. A combined scenario reveals significant synergy effects, as welfare gains exceed the sum of gains from the individual scenarios. Factor returns increase in roughly equal proportions, an attractive feature when assessing the political feasibility of policy initiatives.

Suggested Citation

  • Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 1999. "Marketing margins and agricultural technology in Mozambique," Papers 97537, TMD Discussion Papers.
    • Handle: RePEc:ags:iffp23:97537
    DOI: 10.22004/ag.econ.97537
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