A Macro‐Economic Model for Agricultural Sector Analysis

Abstract

Agricultural sector analyses for purposes of agricultural policy evaluation and planning in developing countries are generally conducted in a partial equilibrium framework without regard to agricultural‐nonagricultural interactions. A relatively simple simulation model built on an input‐output framework is developed which, in combination with an agricultural sector analysis, enables interactions in the product markets and labor market to be considered. The model is illustrated through linkage with an agricultural simulation model to evaluate alternative agricultural policies in Nigeria. The model also has potential for use with other formal and informal sector analysis techniques.