Marketing margins and agricultural technology in Mozambique

Channing Arndt, Henning Tarp Jensen, Sherman Robinson and Finn Tarp

No 97537, TMD Discussion Papers from CGIAR, International Food Policy Research Institute (IFPRI)

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.

Keywords: Marketing; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 33
Date: 1999-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iffp23:97537

DOI: 10.22004/ag.econ.97537

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