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Reforming intellectual property rights and the Bt cotton seed industry in China: Who benefits from policy reform?

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Listed:
  • Hu, Ruifa
  • Pray, Carl
  • Huang, Jikun
  • Rozelle, Scott
  • Fan, Cunhui
  • Zhang, Caiping

Abstract

China has been one of the leaders in agricultural biotechnology research and the adoption of transgenic plants. Despite this, critics argue that China's biotechnology policies could be improved to provide more benefits to farmers. The objective of the paper is to examine if policy changes could improve the welfare of farmers in the cotton industry. The paper first reviews recent changes in laws and policies that affect China's plant biotechnology sector--with a focus on IPR legislation and seed industry reform. Next, using a primary data set collected from 1661 plots from a sample of farmers in northern China in 1999, 2000 and 2001, we econometrically estimate the effect of changes to intellectual property rights (IPR) and seed industry reform on farmer pesticide use and yields. Our results are consistent with a conclusion that improvements to the IPR environment and greater commercialization of the seed industry can increase the benefits that farmers derive from new cotton technology.

Suggested Citation

  • Hu, Ruifa & Pray, Carl & Huang, Jikun & Rozelle, Scott & Fan, Cunhui & Zhang, Caiping, 2009. "Reforming intellectual property rights and the Bt cotton seed industry in China: Who benefits from policy reform?," Research Policy, Elsevier, vol. 38(5), pages 793-801, June.
  • Handle: RePEc:eee:respol:v:38:y:2009:i:5:p:793-801
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    References listed on IDEAS

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    1. Xiaobo Zhang & Shenggen Fan, 2001. "Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 378-388.
    2. Catalina Carrasco-Tauber & L. Joe Moffitt, 1992. "Damage Control Econometrics: Functional Specification and Pesticide Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 158-162.
    3. Pray, Carl E. & Fuglie, Keith O., 2001. "Private Investment In Agricultural Research And International Technology Transfer In Asia," Agricultural Economics Reports 33927, United States Department of Agriculture, Economic Research Service.
    4. Bruce A. Babcock & Erik Lichtenberg & David Zilberman, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 163-172.
    5. Putterman, Louis & Chiacu, Ana F., 1994. "Elasticities and factor weights for agricultural growth accounting: A look at the data for China," China Economic Review, Elsevier, vol. 5(2), pages 191-204.
    6. 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.
    7. Huang, Jikun & Hu, Ruifa & Rozelle, Scott & Qiao, Fangbin & Pray, Carl E., 2002. "Transgenic varieties and productivity of smallholder cotton farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), pages 1-21.
    8. Atanu Saha & C. Richard Shumway & Arthur Havenner, 1997. "The Economics and Econometrics of Damage Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 773-785.
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    Cited by:

    1. Liu, Zhen & Kemp, Ron G.M. & Jongsma, Maarten A. & Huang, Caicheng & Dons, J.J.M. & Omta, S.W.F, 2014. "Key Success Factors of Innovation Projects of Vegetable Breeding Companies in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(4), pages 1-28, November.
    2. Huang, Jikun & Chen, Ruijian & Qiao, Fangbin & Wu, Kongming, 2015. "Biosafety management and pesticide use in China's Bt cotton production," China Economic Review, Elsevier, vol. 33(C), pages 67-75.

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