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Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation

Author

Listed:
  • Anderson, Kym

    () (The World Bank)

  • Jackson, Lee Ann

    () (World Trade Organization)

Abstract

The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of poor people in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Asia, including its impact on rice producers and other poor households. It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the very considerable farm productivity gains (even if extended beyond GM rice to include those from adopting other GM grains and oilseeds) could be exceeded by the welfare gains resulting from the potential health-enhancingattributes of golden rice, which would boost the productivity of unskilled workers among Asia’s poor.

Suggested Citation

  • 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.
  • Handle: RePEc:ris:integr:0340
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    References listed on IDEAS

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    1. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 2000. "Decomposing Simulation Results with Respect to Exogenous Shocks," Computational Economics, Springer;Society for Computational Economics, vol. 15(3), pages 227-249, June.
    2. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer;Society for Computational Economics, vol. 9(2), pages 83-127, May.
    3. Anderson, Kym & Nielsen, Chantal, 2004. "Economic Effects of Agricultural Biotechnology Research in the Presence of Price-Distorting Policies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 374-394.
    4. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
    5. Dawe, D. & Robertson, R. & Unnevehr, L., 2002. "Golden rice: what role could it play in alleviation of vitamin A deficiency?," Food Policy, Elsevier, vol. 27(5-6), pages 541-560.
    6. 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.
    7. Chantal Nielsen & Kym Anderson, 2001. "Global market effects of alternative European responses to genetically modified organisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 320-346, June.
    8. 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.
    9. Zimmermann, Roukayatou & Qaim, Matin, 2002. "Projecting The Benefits Of Golden Rice In The Philippines," Discussion Papers 18753, University of Bonn, Center for Development Research (ZEF).
    10. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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    Citations

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    Cited by:

    1. Frisvold, George B. & Bicknell, Kathryn & Bicknell, Ross, 2005. "A Preliminary Analysis of the Benefits of Introducing Apomixis into Rice," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98515, New Zealand Agricultural and Resource Economics Society.
    2. Jay R. Corrigan & Dinah Pura T. Depositario & Rodolfo M. Nayga & Ximing Wu & Tiffany P. Laude, 2006. "Comparing Open-Ended Choice Experiments and Experimental Auctions: An Application to Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 837-853.
    3. 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).
    4. Taing, William & Ahmadi-Esfahani, Fredoun Z., 2009. "GM technology and the Australian canola," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48191, Australian Agricultural and Resource Economics Society.
    5. Stein, Alexander J. & Sachdev, H.P.S. & Qaim, Matin, 2006. "Can genetic engineering for the poor pay off? An ex-ante evaluation of Golden Rice in India," Research in Development Economics and Policy (Discussion Paper Series) 8534, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
    6. Amrita Chatterjee & Arpita Ghose, 2016. "Consumer’s Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach," Working Papers 2016-137, Madras School of Economics,Chennai,India.

    More about this item

    Keywords

    GMOs; Golden rice; Consumer preferences; Nutritional attributes;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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