Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines
Abstract"Genetically modified (GM) food crops have the potential to raise agricultural productivity in Asian countries, but they are also associated with the risk of market access losses in sensitive importing countries. We study the potential effects of introducing GM food crops in Bangladesh, India, Indonesia, and the Philippines in the presence of trade-related regulations of GM food in major importers. We focus on GM field crops (rice, wheat, maize, soybeans, and cotton) resistant to biotic and abiotic stresses, such as drought-resistant rice, and use a multi-country, multi-sector computable general equilibrium model. We build on previous international simulation models by improving the representation of the productivity shocks associated with GM crops, and by using an improved representation of the world market, accounting for the effects of GM food labeling policies in major importers and the possibility of segregation for non-GM products going toward sensitive importing countries. The results of our simulations first show that the gains associated with the adoption of GM food crops largely exceed any type of potential trade losses these countries may incur. Adopting GM crops also allows net importing countries to greatly reduce their imports. Overall, we find that GM rice is bound to be the most advantageous crop for the four countries. Second, we find that segregation of non-GM crops can help reduce any potential trade loss for GM adopters, such as India, that want to keep export opportunities in sensitive countries, even with a 5 percent segregation cost. Lastly, we find that the opportunity cost of segregation is much larger for sensitive importing countries than for countries adopting new GM crops, which suggests that sensitive importers will have the incentive to invest in separate non-GM marketing channels if exporting countries like India decide to adopt GM food crops." from Authors' Abstract
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 740.
Date of creation: 2007
Date of revision:
Genetically modified food; International trade; Developing countries; Segregation;
Other versions of this item:
- Gruere, Guillaume P. & Bouet, Antoine & Mevel, Simon, 2007. "Genetically Modified Food and International Trade: The Case of India, Bangladesh, Indonesia and the Philippines," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9917, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- NEP-AGR-2008-03-25 (Agricultural Economics)
- NEP-ALL-2008-03-25 (All new papers)
- NEP-INT-2008-03-25 (International Trade)
- NEP-SEA-2008-03-25 (South East Asia)
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.:
- 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.
- Anderson, Kym & Jackson, Lee Ann & Valenzuela, Ernesto, 2006. "GM Cotton Adoption, Recent and Prospective: A Global CGE Analysis of Economic Impacts," CEPR Discussion Papers 5568, C.E.P.R. Discussion Papers.
- Chantal Nielsen & Kym Anderson, 2001. "Global market effects of alternative European responses to genetically modified organisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 320-346, June.
- Kym Anderson & Lee Ann Jacskon & Chantal Pohl Nielsen, 2004.
"Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation,"
Centre for International Economic Studies Working Papers
2004-13, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym & Jackson, Lee Ann, 2005. "Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 771-788.
- Anderson, Kym & Jackson, Lee Ann & Nielsen, Chantal Pohl, 2004. "Genetically modified rice adoption : implications for welfare and poverty alleviation," Policy Research Working Paper Series 3380, The World Bank.
- 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.
- Kym Anderson & Lee Ann Jackson, 2005.
"Some Implications of GM Food Technology Policies for Sub-Saharan Africa,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 14(3), pages 385-410, September.
- Kym Anderson & Lee Ann Jacskon, 2004. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Centre for International Economic Studies Working Papers 2004-09, University of Adelaide, Centre for International Economic Studies.
- van Tongeren, Frank W. & van Meijl, Hans, 2003.
"International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
25835, International Association of Agricultural Economists.
- 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.
- Pohl Nielsen, Chantal & Robinson, Sherman & Thierfelder, Karen, 2001. "Genetic Engineering and Trade: Panacea or Dilemma for Developing Countries," World Development, Elsevier, vol. 29(8), pages 1307-1324, August.
- Kym Anderson & Shunli Yao, 2003.
"China, Gmos And World Trade In Agricultural And Textile Products,"
Pacific Economic Review,
Wiley Blackwell, vol. 8(2), pages 157-169, 06.
- Anderson, Kym & Yao, Shunli, 2002. "China, GMOs and World Trade in Agricultural and Textile Products," CEPR Discussion Papers 3171, C.E.P.R. Discussion Papers.
- You, Liangzhi & Wood, Stanley, 2006. "An entropy approach to spatial disaggregation of agricultural production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 329-347, October.
- Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
- Hareau, Guy Gaston & Norton, George W. & Mills, Bradford F. & Peterson, Everett B., 2004. "Potential Benefits Of Transgenic Rice In Asia: A General Equilibrium Approach," 2004 Annual meeting, August 1-4, Denver, CO 20334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers 158, International Food Policy Research Institute (IFPRI).
- Guillaume P. Gru�re & Mark W. Rosegrant, 2008. "Assessing the Implementation Effects of the Biosafety Protocol's Proposed Stringent Information Requirements for Genetically Modified Commodities in Countries of the Asia Pacific Economic Cooperation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 214-232.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.