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General Equilibrium Impacts of Technological Change
under Different Market Structures: A Comparison of Supply Managed and
Other Primary Agricultural Markets in Canada
Pahan Prasada *
ABSTRACT
Market impacts of technological change in Canadian
agriculture are measured within a CGE framework using 2001 input-output
data with agriculture disaggregated to six sectors and thirteen
commodities. Technological change is modelled as productivity rises in
the use of intermediate inputs and of primary factors. Impacts on
output, intermediate use of output, foreign trade, final consumption,
returns to primary factors and relative price are calculated for
primary and processed food products. Impacts of technological change
can be summarised into two general outcomes. First, supply managed
sectors respond to technological change differently than other
agricultural sectors. In the former, economic rents generated from
quotas increase while in the latter, outputs, exports, and final
consumption increase along with declines of relative supply prices.
Second, large relative price declines for other commodities lead to
consumer gains.
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*
The author is lecturer, Department of
Agricultural Economics and Business Management, Faculty of Agriculture,
University of Peradeniya, Sri Lanka.
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Prasada
2007 Sri Lankan
Journal of
Agricultural Economics. Volume 9 (1). Pp. 1 - 22
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