Impact of Potato Research in Bangladesh : An Ex-ante Analysis

Abstract

An ex ante rate of return analysis was conducted using the economic surplus model to estimate the Internal Rate of Return (IRR) by newly potato variety of Provento developed by Tuber Crops Research Centre (TCRC), BARI. The IRR of the total investment in Provento variety potato research was calculated at 34%. Sensitivity analysis revealed that the estimated Internal Rate of Return (IRR) of Provento variety potato ranges from 29%-39%. When the supply elasticity increased by 25%, the IRR was 30% and when the supply elasticity decreased by 25%, the IRR become 39%. Ex ante analysis indicates that the expenditure on the Provento variety potato of TCRC, BARI for research and development is a good investment.