Marketing margins and agricultural technology in Mozambique

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.

Author: 
Arndt, Channing
Jensen, Henning Tarp
Robinson, Sherman
Tarp, Finn
Published date: 
1999
Publisher: 
International Food Policy Research Institute (IFPRI)
Series number: 
43
PDF file: 
application/pdf icontmdp43.pdf(214.8KB)