Some Implications of GM Food Technology Policies for Sub-Saharan Africa

Posted: 29 Feb 2008

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)

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 labourers in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Sub-Saharan Africa (SSA). It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the welfare gains are potentially very large, especially from golden 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 gain in terms of greater market access to the EU.

Keywords: O12, Q13

Suggested Citation

Anderson, Kym and Jackson, Lee Ann, Some Implications of GM Food Technology Policies for Sub-Saharan Africa. Journal of African Economies, Vol. 14, Issue 3, pp. 385-410, 2005, Available at SSRN: https://ssrn.com/abstract=915467

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)

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