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Village-wide Effects of Agricultural Biotechnology: The Case of Bt Cotton in India

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  • Subramanian, Arjunan
  • Qaim, Matin
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    Abstract

    Summary Previous studies on impacts of agricultural biotechnology have mostly focused on direct effects. We suggest an economy-wide framework to analyze income distribution aspects more carefully. For a village in India, a micro-social accounting matrix (SAM) is developed and used to simulate the effects of Bt cotton adoption. Overall, the technology is employment generating, although family labor in cotton production is saved. While substantial benefits are observed for small and large farmers, total household income effects are bigger for larger farms. This is mostly due to differential opportunity incomes of saved family labor. Some research and policy implications are discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 1 (January)
    Pages: 256-267

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:1:p:256-267

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: agricultural biotechnology Bt cotton village-wide effects social accounting matrix Asia India;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Carl Pray & Danmeng Ma & Jikun Huang & Fangbin Qiao, 2001. "Impact of Bt Cotton in China," CEMA Working Papers 510, China Economics and Management Academy, Central University of Finance and Economics.
    2. Matin Qaim & Arjunan Subramanian & Gopal Naik & David Zilberman, 2006. "Adoption of Bt Cotton and Impact Variability: Insights from India," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 48-58.
    3. Matin Qaim, 2005. "Agricultural Biotechnology Adoption in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1317-1324.
    4. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
    5. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October.
    6. Subramanian, Shankar & Sadoulet, Elisabeth, 1990. "The Transmission of Production Fluctuations and Technical Change in a Village Economy: A Social Accounting Matrix Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 39(1), pages 131-73, October.
    7. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
    8. Thirtle, Colin & Beyers, Lindie & Ismael, Yousouf & Piesse, Jenifer, 2003. "Can GM-Technologies Help the Poor? The Impact of Bt Cotton in Makhathini Flats, KwaZulu-Natal," World Development, Elsevier, vol. 31(4), pages 717-732, April.
    9. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
    10. Gouse, Marnus & Kirsten, Johann F. & Jenkins, Lindie, 2002. "Bt Cotton In South Africa: Adoption And The Impact On Farm Incomes Amongst Small-Scale And Large Scale Farmers," Working Papers 18022, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    11. Fernandez-Cornejo, Jorge & Hendricks, Chad & Mishra, Ashok K., 2005. "Technology Adoption and Off-Farm Household Income: The Case of Herbicide-Tolerant Soybeans," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
    12. Elbehri, Aziz & Macdonald, Steve, 2004. "Estimating the Impact of Transgenic Bt Cotton on West and Central Africa: A General Equilibrium Approach," World Development, Elsevier, vol. 32(12), pages 2049-2064, December.
    13. Richard Bennett & Uma Kambhampati & Stephen Morse & Yousouf Ismael, 2006. "Farm-Level Economic Performance of Genetically Modified Cotton in Maharashtra, India," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 59-71.
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    Cited by:
    1. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    2. Subramanian, Arjunan & Qaim, Matin, 2009. "Rural Poverty and Employment Effects of Bt Cotton in India," 2009 Conference, August 16-22, 2009, Beijing, China 50555, International Association of Agricultural Economists.
    3. Gruere, Guillaume P. & Sun, Yan, 2012. "Measuring the contribution of Bt cotton adoption to India's cotton yields leap:," IFPRI discussion papers 1170, International Food Policy Research Institute (IFPRI).
    4. Lai, Cynthia & Chan, Catherine & Halbrendt, Jacqueline & Shariq, Linsey & Roul, Pravat & Idol, Travis & Ray, Chittanrajan & Evensen, Carl, 2012. "Comparative Economic and Gender, Labor Analysis of Conservation Agriculture Practices in Tribal Villages in India," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(1).

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