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

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  • Kym Anderson
  • Lee Ann Jackson

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. Copyright 2005, Oxford University Press.

Suggested Citation

  • Kym Anderson & Lee Ann Jackson, 2005. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 14(3), pages 385-410, September.
  • Handle: RePEc:oup:jafrec:v:14:y:2005:i:3:p:385-410
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    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
    2. Kym Anderson & Ernesto Valenzuela, 2011. "Agricultural Policy as a Barrier to Global Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 11, Edward Elgar Publishing.
    3. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2008. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global Computable General Equilibrium Analysis of Economic Impacts," Economic Development and Cultural Change, University of Chicago Press, vol. 56(2), pages 265-296, January.
    4. Takeshima Hiroyuki & Gruère Guillaume P, 2011. "Pressure Group Competition and GMO Regulations in Sub-Saharan Africa - Insights from the Becker Model," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-19, July.
    5. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Centre for the Study of African Economies, vol. 15(4), pages 626-670, December.
    6. Wafula, David & Gruère, Guillaume P., 2013. "Genetically modified organisms, exports, and regional integration in Africa," IFPRI book chapters, in: Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara, chapter 5, pages 143-157, International Food Policy Research Institute (IFPRI).
    7. Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
    8. Anderson, Kym & Valenzuela, Ernesto, 2006. "WTO's Doha Cotton Initiative: A Tale of Two Issues," CEPR Discussion Papers 5567, C.E.P.R. Discussion Papers.
    9. Amrita Chatterjee & Sanjib Pohit & Arpita Ghose, 2016. "Trade and Distributional Impacts of Genetically Modified Crops in India: A CGE Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 381-407, August.
    10. Yawson, Robert M. & Yawson, Ivy, 2008. "Policy options of agricultural biotechnology R&D in Sub-Saharan Africa: key issues and aspects," MPRA Paper 34880, University Library of Munich, Germany.
    11. Guillaume P. Gruère & Simon Mevel & Antoine Bouët, 2009. "Balancing productivity and trade objectives in a competing environment: should India commercialize GM rice with or without China?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 459-475, July.
    12. Georgina Catacora-Vargas & Rosa Binimelis & Anne I. Myhr & Brian Wynne, 2018. "Socio-economic research on genetically modified crops: a study of the literature," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 489-513, June.
    13. Kym Anderson & Ernesto Valenzuela, 2007. "The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues," The World Economy, Wiley Blackwell, vol. 30(8), pages 1281-1304, August.
    14. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2007. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global CGE Analysis of Economic Impacts," Centre for International Economic Studies Working Papers 2007-07, University of Adelaide, Centre for International Economic Studies.
    15. Anderson, Kym & Jackson, Lee Ann & Valenzuela, Ernesto, 2006. "GM Cotton Adoption, Recent and Prospective: A Global CGE Analysis of Economic Impacts," CEPR Discussion Papers 5568, C.E.P.R. Discussion Papers.
    16. Gruere, Guillaume & Bouet, Antoine & Mevel, Simon, 2007. "Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines," IFPRI discussion papers 740, International Food Policy Research Institute (IFPRI).
    17. Gruère, Guillaume & Sengupta, Debdatta, 2009. "GM-free private standards and their effects on biosafety decision-making in developing countries," Food Policy, Elsevier, vol. 34(5), pages 399-406, October.
    18. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, December.
    19. Eicher, Carl K. & Maredia, Karim & Sithole-Niang, Idah, 2005. "Biotechnology and the African Farmer," Staff Paper Series 11495, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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