Market impacts of technological change in Canadian agriculture are measured within a computable general equilibrium framework using 2001 input-output data with agriculture disaggregated to six sectors and 13 commodities. Technological change is modeled as productivity rises in the use of intermediate inputs and of primary factors. Impacts on output, intermediate use of output, foreign trade,
... [Show full abstract] final consumption, returns to primary factors, and relative prices are calculated for primary agricultural commodities and processed food products. Impacts are summarized as three general outcomes. First, supply managed sectors adjust to technological change differently than other agricultural sectors. In the former, quota rents 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. Third, producer gains increase when the international competitiveness of agriculture increases. Finally, we compare the differential impact of technological change with and without supply management.
