Abstract

Wangari M. J., Richard V. Sala and Kibaki Kemboi

This study attempts to assess the impact of improving agricultural efficiency on Sudan economy. It focuses on the effect of improving the efficiency of sesame, sorghum, cotton, wheat; due to their economic important in Sudan economy; on macroeconomic and sectoral variables. It uses the International Food Policy Research Institute (IFPRI) standard Computable General Equilibrium (CGE) model to achieve its objectives. Sudan Social Accounting Matrix (SAM) for year 2004 constitutes the core database for the CGE model. The model results reveal that improving the efficiency of each agricultural commodity would increase its own output and exports, and reduce exports of the other commodities. However, the expected increases in output would generate different mixed changes on the other crops. It also indicates that improving wheat production efficiency would result in reducing its import, while improving the efficiency of the aggregate agricultural sector would increase wheat imports. The overall effect of improved efficiency of each commodity would improve the GDP due to improvement in private consumption and investment regardless of balance of trade deterioration. The study recommends an integrated agricultural efficiency improvement to achieve sound economic performance. It also encourages the innovation of fast food from local commodities to improve the balance of payment.