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Using Economics to Explain Spatial Diversity in a Wheat Crop: Examples from Australia and China

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  • Smale, Melinda
  • Meng, Erika C.H.
  • Brennan, John P.
  • Hu, Ruifa

Abstract

Spatial diversity indicators may serve an important function for policymakers as they seek to manage crop genetic diversity and potential externalities associated with diffusion of some types of genetically improved crops. This paper adapts spatial diversity indices employed by ecologists in the study of species diversity to area distributions of modern wheat varieties in contrasting production systems of Australia and China. The variation in three interrelated concepts of diversity "richness, abundance, and evenness" is explained by factors related to the demand and supply of varieties, agroecology, and policies using the econometric method of Zellner's seemingly unrelated regression (SUR). Results suggest that in addition to expected yield and profitability, other variety characteristics are important in explaining variation in the spatial distribution of modern wheat varieties. Environmental factors and policy variables related to the supply of varieties, international research spillins, and market liberalization are also determinants of the diversity in these systems. Explanatory factors affect richness, abundance and evenness in the distribution of modern wheat varieties in different ways. Comparing results between a small, commercial wheat-producing shire in Australia and a large, heterogeneous area in seven provinces of China illustrates the importance of scale and the nature of the farming system. Further research might include: (1) refinement of methods used to construct spatial diversity indices by incorporating geographically-referenced information; (2) more explicit treatment of the relationship between scale of measurement and diversity indices; (3) refinements in the specification of policy variables, and (4) application of similar methods in zones where traditional varieties are grown.

Suggested Citation

  • Smale, Melinda & Meng, Erika C.H. & Brennan, John P. & Hu, Ruifa, 1999. "Using Economics to Explain Spatial Diversity in a Wheat Crop: Examples from Australia and China," Economics Working Papers 7697, CIMMYT: International Maize and Wheat Improvement Center.
    • Handle: RePEc:ags:cimmew:7697
    DOI: 10.22004/ag.econ.7697
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    References listed on IDEAS

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    1. Brennan, John P. & Murray, Gordon M. & Ballantyne, Barbara, 1992. "Private and Social Costs of Growing Cultivars Susceptible to Diseases," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146426, Australian Agricultural and Resource Economics Society.
    2. Brennan, John P. & Godden, David P. & Smale, Melinda & Meng, Erika C.H., 1999. "Variety Choice by Australian Wheat Growers and Implications for Genetic Diversity," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123785, Australian Agricultural and Resource Economics Society.
    3. Andrew P. Barkley & Lori L. Porter, 1996. "The Determinants of Wheat Variety Selection in Kansas, 1974 to 1993," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 202-211.
    4. Smale, Melinda & Bellon, Mauricio R. & Gomez, Jose Alfonso Aguirre, 1999. "The Private and Public Characteristics of Maize Land Races and the Area Allocation Decisions of Farmers in a Center of Crop Diversity," Economics Working Papers 7669, CIMMYT: International Maize and Wheat Improvement Center.
    5. Gomez, Jose Alfonso Aguirre & Bellon, Mauricio R. & Smale, Melinda, 1998. "A Regional Analysis of Maize Biological Diversity in Southeastern Guanajuato, Mexico," Economics Working Papers 7671, CIMMYT: International Maize and Wheat Improvement Center.
    6. Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
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    Cited by:

    1. Brennan, John P. & Bialowas, Adam, 2001. "Changes in Characteristics of NSW Wheat Varieties, 1965-1997," Research Reports 28003, New South Wales Department of Primary Industries Research Economists.

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