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Implications of genetically modified food technology policies for Sub-Saharan Africa

  • Anderson, Kym
  • Jackson, Lee Ann

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 laborers in developing countries. The authors analyze empirically the potential economic effects of adopting both types of innovation in Sub-Saharan Africa (SSA). They do so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest that the welfare gains are potentially very large, especially from nutritionally enhanced GM wheat and rice, and that-contrary to the claims of numerous interests-those estimated benefits are diminished only slightly by the presence of the European Union's current barriers to 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 economic gain for these farmers from greater market access to the EU.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3411.

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Date of creation: 01 Sep 2004
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Handle: RePEc:wbk:wbrwps:3411
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  1. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 2000. "Decomposing Simulation Results with Respect to Exogenous Shocks," Computational Economics, Society for Computational Economics, vol. 15(3), pages 227-249, June.
  2. Harvey E. Lapan & GianCarlo Moschini, 2002. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," Center for Agricultural and Rural Development (CARD) Publications 02-wp302, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. Ruel, Marie T. & Bouis, Howarth E., 1997. "Plant breeding," FCND discussion papers 30, International Food Policy Research Institute (IFPRI).
  4. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
  5. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October.
  6. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
  7. Carl Pray & Danmeng Ma & Jikun Huang & Fangbin Qiao, 2001. "Impact of Bt Cotton in China," CEMA Working Papers 510, China Economics and Management Academy, Central University of Finance and Economics.
  8. Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
  9. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
  10. Zimmermann, Roukayatou & Qaim, Matin, 2002. "Projecting The Benefits Of Golden Rice In The Philippines," Discussion Papers 18753, University of Bonn, Center for Development Research (ZEF).
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