The first generation of genetically modified (GM) crop varieties sought to farmer profitability through cost reductions or higher yields. The generation of GM food research is focusing also on breeding for of interest to consumers, beginning with ‘golden rice’, which has genetically engineered to contain a higher level of vitamin A and boost the health of unskilled labourers in developing countries. This analyses empirically the potential economic effects of adopting both of innovation in Sub-Saharan Africa (SSA). It does so using the economy-wide computable general equilibrium model known as . The results suggest the welfare gains are potentially very large, from golden rice and that—contrary to the claims of numerous —those estimated benefits are diminished only slightly by the of the European Union’s current barriers to imports of GM foods. particular, if SSA countries impose bans on GM crop imports in an to maintain access to EU markets for non-GM products, the loss to consumers due to that protectionism boost to SSA farmers is far than the small gain in terms of greater market access to the EU.
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Anderson et al. (2005) studied this question.