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Economic Impacts Of Genetically Modified Crops In China

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  • Huang, Jikun
  • Hu, Ruifa
  • van Meijl, Hans
  • van Tongeren, Frank W.

Abstract

China has made a major investment in biotechnology research. Genetically modified (GM) cotton is widely adopted and the list of GM technologies in trials is impressive. At the same time there is an active debate on when China should commercialize its GM food crops. The overall goal of this paper is to provide an economy-wide assessment of these issues under various scenarios. Based on a unique data from empirical micro-level study and field trial in China and a modified GTAP model, our results indicate that the development of biotechnology has an important impact on China's production, trade and welfare. Welfare gains far outweigh the public biotechnology research expenditures. Most gains occur inside China. Policy makers should put less weight on the international dimension in making their decisions on biotechnology development.

Suggested Citation

  • Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank W., 2003. "Economic Impacts Of Genetically Modified Crops In China," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25883, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25883
    DOI: 10.22004/ag.econ.25883
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    References listed on IDEAS

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    1. Hertel, Thomas W. & Kym Anderson & Joseph Francois & Will Martin, 2002. "Agriculture and Non-Agricultural Liberalization in the Millennium Round," GTAP Working Papers 235, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Pray, Carl & Ma, Danmeng & Huang, Jikun & Qiao, Fangbin, 2001. "Impact of Bt Cotton in China," World Development, Elsevier, vol. 29(5), pages 813-825, May.
    3. Meijl, Hans van & Tongeren, Frank van, 2004. "International diffusion of gains from biotechnology and the European Union's Common Agricultural Policy," Agricultural Economics, Blackwell, vol. 31(2-3), pages 307-316, December.
    4. Anderson, Kym & Yao, Shunli, 2001. "China, GMOs and World Trade in Agricultural and Textile Products," Conference papers 330922, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Huang, Jikun & Hu, Ruifa & Rozelle, Scott & Qiao, Fangbin & Pray, Carl E., 2001. "Small Holders, Transgenic Varieties, And Production Efficiency: The Case Of Cotton Farmers In China," Working Papers 11995, University of California, Davis, Department of Agricultural and Resource Economics.
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    Cited by:

    1. Michel Fok & Weili Liang & Guiyan Wang & Yuhong Wu, 2005. "Differentiated management of GM diffusion in China: Further hampering the self-sufficiency in cereal production?," Post-Print halshs-00008939, HAL.
    2. Bond, Craig A. & Carter, Colin A. & Farzin, Y. Hossein, 2005. "Economic and Environmental Impacts of Adoption of Genetically Modified Rice in California," Research Reports 11927, University of California, Davis, Giannini Foundation.
    3. Martinez-Poveda, Africa & Molla-Bauza, Margarita Brugarolas & del Campo Gomis, Francisco Jose & Martinez, Laura Martinez-Carrasco, 2009. "Consumer-perceived risk model for the introduction of genetically modified food in Spain," Food Policy, Elsevier, vol. 34(6), pages 519-528, December.

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