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Economic Impacts of Policies Affecting Crop Biotechnology and Trade

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  • Kym Anderson

    (School of Economics, University of Adelaide)

Abstract

Agricultural biotechnologies, and especially transgenic crops, have the potential to boost food security in developing countries by offering higher incomes for farmers and lower-priced and better quality food for consumers. That potential is being heavily compromised, however, because the European Union and some other countries have implemented strict regulatory systems to govern their production and consumption of genetically modified (GM) food and feed crops, and to prevent imports of foods and feedstuffs that do not meet these strict standards. This paper analyses empirically the potential economic effects of adopting transgenic crops in Asia and Sub-Saharan Africa. It does so using a multi-country, multi-product model of the global economy. The results suggest the economic welfare gains from crop biotechnology adoption are potentially very large, and that those benefits are diminished only very slightly by the presence of the European UnionÂ’s restriction on imports of GM foods. That is, if developing countries retain bans on GM crop production in an attempt to maintain access to EU markets for non-GM products, the loss to their food consumers as well as to farmers in those developing countries is huge relative to the slight loss that could be incurred from not retaining EU market access.

Suggested Citation

  • Kym Anderson, 2010. "Economic Impacts of Policies Affecting Crop Biotechnology and Trade," Centre for International Economic Studies Working Papers 2010-12, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2010-12
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    File URL: http://www.adelaide.edu.au/cies/publications/present/CIES_DP1012.pdf
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    References listed on IDEAS

    as
    1. Gruère, Guillaume & Sengupta, Debdatta, 2009. "GM-free private standards and their effects on biosafety decision-making in developing countries," Food Policy, Elsevier, vol. 34(5), pages 399-406, October.
    2. 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.
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    Cited by:

    1. Stéphan Marette & Anne‐Célia Disdier & Anastasia Bodnar & John Beghin, 2023. "New plant engineering techniques, R&D investment and international trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 349-368, June.
    2. Bindu Paudel & Deepthi E. Kolady & David Just & Evert Van der Sluis, 2023. "Determinants of consumer acceptance of gene‐edited foods and its implications for innovators and policymakers," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 623-645, July.
    3. Paudel, Bindu & Kolady, Deepthi Elizabeth & Just, David R. & Van Der Sluis, Evert, 2021. "Determinants of consumer acceptance of genetically modified and gene-edited foods: Market and policy implications," 2021 Annual Meeting, August 1-3, Austin, Texas 313905, Agricultural and Applied Economics Association.
    4. Huffman Wallace & McCluskey Jill, 2017. "Food Labels, Information, and Trade in GMOs," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(1), pages 1-9, January.
    5. Yeboah, Osei-Agyeman & Shaik, Saleem & Ofosu, Stephen A., 2023. "Computing the Cost of U.S. Trade in GE Processed Animal Products: A Gravity Modeling Approach," 2023 Annual Meeting, July 23-25, Washington D.C. 335754, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Transgenic crops; genetically modified food; agricultural biotechnology; food trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • 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; Animal Welfare Policy

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