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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

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.

Suggested Citation

  • Subramanian, Arjunan & Qaim, Matin, 2009. "Village-wide Effects of Agricultural Biotechnology: The Case of Bt Cotton in India," World Development, Elsevier, vol. 37(1), pages 256-267, January.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:1:p:256-267
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    References listed on IDEAS

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    Cited by:

    1. Ramaswami, Bharat & Pray, Carl E. & Lalitha, N., 2012. "The Spread of Illegal Transgenic Cotton Varieties in India: Biosafety Regulation, Monopoly, and Enforcement," World Development, Elsevier, vol. 40(1), pages 177-188.
    2. Shah, Deepak K., 2012. "Bt Cotton in India: A Review of Adoption, Government Interventions and Investment Initiatives," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(3).
    3. Evita Pangaribowo & Nicolas Gerber & Pascal Tillie, 2013. "Assessing the FNS impacts of technological and institutional innovations and future innovation trends," FOODSECURE Working papers 11, LEI Wageningen UR.
    4. Stone, Glenn Davis, 2011. "Field versus Farm in Warangal: Bt Cotton, Higher Yields, and Larger Questions," World Development, Elsevier, vol. 39(3), pages 387-398, March.
    5. Raney, Terri & Matuschke, Ira, 2010. "Genetically Modified Crops In Developing Countries: Back To The Future," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188106, International Consortium on Applied Bioeconomy Research (ICABR).
    6. Qiao, Fangbin, 2015. "Fifteen Years of Bt Cotton in China: The Economic Impact and its Dynamics," World Development, Elsevier, vol. 70(C), pages 177-185.
    7. 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.
    8. Lincoln Addison & Matthew Schnurr, 2016. "Growing burdens? Disease-resistant genetically modified bananas and the potential gendered implications for labor in Uganda," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(4), pages 967-978, December.
    9. Gouse, Marnus & Sengupta, Debdatta & Zambrano, Patricia & Zepeda, José Falck, 2016. "Genetically Modified Maize: Less Drudgery for Her, More Maize for Him? Evidence from Smallholder Maize Farmers in South Africa," World Development, Elsevier, vol. 83(C), pages 27-38.
    10. 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.
    11. Krishna, Vijesh V. & Qaim, Matin, 2012. "Bt cotton and sustainability of pesticide reductions in India," Agricultural Systems, Elsevier, vol. 107(C), pages 47-55.
    12. Birthal, Pratap S., 2013. "Application of Frontier Technologies for Agricultural Development," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(1).
    13. Klara Fischer & Elisabeth Ekener-Petersen & Lotta Rydhmer & Karin Edvardsson Björnberg, 2015. "Social Impacts of GM Crops in Agriculture: A Systematic Literature Review," Sustainability, MDPI, Open Access Journal, vol. 7(7), pages 1-23, July.
    14. Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192.
    15. 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).
    16. 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 (IFAMA), vol. 15(1).
    17. Ramasundaram, P. & Suresh, A. & Samuel, Josily & Wankhade, Shwetal, 2014. "Welfare Gains from Application of First Generation Biotechnology in Indian Agriculture: The Case of Bt Cotton," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(1).
    18. Faße, Anja & Winter, Etti & Grote, Ulrike, 2014. "Bioenergy and rural development: The role of agroforestry in a Tanzanian village economy," Ecological Economics, Elsevier, vol. 106(C), pages 155-166.

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