Potato-Led Growth: The Macroeconomic Effects of Technological Innovations in Bolivian Agriculture

Abstract

Through the use of a Computable General Equilibrium model we measure the economy-wide effects of improving the production technology of relatively non-traded staples (potatoes, maize), import crops (wheat), and export crops (soybeans) in Bolivia. The results of the analysis suggest that technological innovations in the production technology of potatoes would benefit the Bolivian economy most. We discuss the reasons for the limited effects of technological innovations in tradeable crops. © 1993, Copyright Taylor & Francis Group, LLC. All rights reserved.