Technological change in Canadian agriculture: A computable general equilibrium analysis

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Prasada, Dickwella Vidanage Pahan

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University of Guelph

Abstract

This thesis uses a computable general equilibrium model to analyze the economy-wide impacts of technological change in the Canadian agricultural sector. Numerous 'returns to research' studies conducted in Canada and elsewhere bear evidence to the presence of significant direct impacts of research and technological change on the targeted agricultural industries. Far less is known about economy-wide impacts of agricultural technological change. The model incorporates an aggregation of 29 commodities, 20 sectors and 4 final demand categories based on Canadian input-output tables for 2001, Technological change is represented by increases in productivity in the use of primary factors and of intermediate inputs in supply-managed, other primary agricultural and processing sectors. Technological change in supply managed sectors lead to increases in quota rents while in other sectors, production, consumption and exports increase markedly with declines of relative output prices.

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Keywords

Canadian agriculture, technological change, computable general equilibrium analysis, quota rents, output prices

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