Marketing margins and agricultural technology in Mozambique

Improvements in agricultural productivity and reductions in marketing costs in Mozambique are analysed using a computable general equilibrium (CGE) mo del. The model incorporates detailed marketing margins and separates househ old demand for marketed and home-produced goods. Individual simulations of improved agricultural technology and lower marketing margins yield welfare gains across the economy. In addition, a combined scenario reveals signific ant synergy effects, as gains exceed the sum of gains from the individual s cenarios. Relative welfare improvements are higher for poor rural household s, while factor returns increase in roughly equal proportions, an attractiv e feature when assessing the political feasibility of policy initiatives.