Modelling the Economy-Wide Impact of Technological Innovation and Mapping Agricultural Potential: The Case of Malawi

Abstract

This discussion paper analyzes the economy-wide impact of a series of agricultural innovations in Malawi. Using an agricultural focused computable general equilibrium model disaggregated to reflect Malawi agro-ecological zones, we simulate three scenarios: one involving smallholders catching up to the production frontier, and two scenarios of agronomic innovations consisting in changes in level and application rate of nitrogen. Our results show a positive impact on the economy following an increase in maize yield and production efficiency under the different scenarios.