Implications of Genetically Modified Food Technology Policies for Sub-Saharan Africa

36 Pages Posted: 20 Apr 2016

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Lee Ann Jackson

World Trade Organization (WTO)

Date Written: September 17, 2004

Abstract

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. Anderson and Jackson analyze empirically the potential economic effects of adopting both types of innovation in Sub-Saharan Africa (SSA). They do so using the global economywide 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.

This paper - a product of the Trade Team, Development Research Group - is part of a larger effort in the group to better understand the contributions of both new technologies and discriminatory trade policies to economic welfare of different groups in developing countries.

Keywords: Biotechnology, GMOs, trade policy, regulation, computable general equilibrium, Sub-Saharan Africa

JEL Classification: C68, D58, F13, O3, Q17, Q18

Suggested Citation

Anderson, Kym and Jackson, Lee Ann, Implications of Genetically Modified Food Technology Policies for Sub-Saharan Africa (September 17, 2004). Available at SSRN: https://ssrn.com/abstract=625288

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

Lee Ann Jackson

World Trade Organization (WTO) ( email )

154 Rue de Lausanne
CH-1211 Geneva 21
Switzerland
41 22 739 6907 (Phone)
41 22 739 5760 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
173
Abstract Views
2,608
rank
191,544
PlumX Metrics