Table 7 Design of policy experiments

Scenario 1

Capital-using technical change

Increase of capital intensity (3 %) in agriculture

Scenario 2

Labor-using technical change

Increase of labor intensity (10 %) in agriculture

Scenario 3

Improving the agricultural resource base (teach farmers how to better use fertilizer)

Reduction (10 %) of chemicals per unit of aggregate intermediate input

Reduction (20 %) of factor requirements per unit of output

Scenario 4

Reducing fertilizer sourcing costs

Reduction (50 %) of import trade margins for chemicals

Reduction (50 %) of domestic trade margins for chemicals

Scenario 5

Reducing fertilizer distribution costs

Reduction (50 %) in import transportation costs for chemicals

Reduction (50 %) in domestic transportation costs for chemicals