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Farm Level Impacts of Bt Corn Adoption in a Developing Country: Evidence from the Philippines

Author

Listed:
  • Mutuc, Maria Erlinda M.
  • Pan, Suwen
  • Rejesus, Roderick M.
  • Yorobe, Jose M., Jr.

Abstract

This article examines the ex post farm-level impacts of Bt corn adoption in the Philippines. Using an econometric approach that addresses simultaneity, selection, and censoring problems, we show that Bt corn adoption provides modest but statistically significant increases in farm-level yields and profits. Furthermore, our results suggest that farm-level yield and profit impacts of Bt corn adoption are underestimated when censoring in the pesticide application variable is not considered in the estimation procedures. Previous literature have emphasized the importance of simultaneity and selection problems but this is the first study that have raised the issue of censoring problems in estimating the farm-level effects of Bt corn adoption.

Suggested Citation

  • Mutuc, Maria Erlinda M. & Pan, Suwen & Rejesus, Roderick M. & Yorobe, Jose M., Jr., 2007. "Farm Level Impacts of Bt Corn Adoption in a Developing Country: Evidence from the Philippines," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9891, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9891
    DOI: 10.22004/ag.econ.9891
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    Cited by:

    1. Joshua D. Detre & Hiroki Uematsu & Ashok K. Mishra, 2011. "The influence of GM crop adoption on the profitability of farms operated by young and beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 41-61, May.
    2. Regier, Gregory K & Dalton, Timothy J, 2014. "Labour savings of Roundup Ready maize: Impact on cost and input substitution for South African smallholders," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(3), pages 1-14, August.
    3. Jose Yorobe & Ekin Birol & Melinda Smale, 2010. "Farmer Preferences for Bt Maize, Seed Information and Credit in the Philippines," Chapters, in: Jeff Bennett & Ekin Birol (ed.), Choice Experiments in Developing Countries, chapter 13, Edward Elgar Publishing.
    4. Oliver Musshoff & Norbert Hirschauer, 2011. "A behavioral economic analysis of bounded rationality in farm financing decisions," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 62-83, May.

    More about this item

    Keywords

    Crop Production/Industries;

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