IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/740.html
   My bibliography  Save this paper

Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines

Author

Listed:
  • Gruere, Guillaume
  • Bouet, Antoine
  • Mevel, Simon

Abstract

"Genetically modified (GM) food crops have the potential to raise agricultural productivity in Asian countries, but they are also associated with the risk of market access losses in sensitive importing countries. We study the potential effects of introducing GM food crops in Bangladesh, India, Indonesia, and the Philippines in the presence of trade-related regulations of GM food in major importers. We focus on GM field crops (rice, wheat, maize, soybeans, and cotton) resistant to biotic and abiotic stresses, such as drought-resistant rice, and use a multi-country, multi-sector computable general equilibrium model. We build on previous international simulation models by improving the representation of the productivity shocks associated with GM crops, and by using an improved representation of the world market, accounting for the effects of GM food labeling policies in major importers and the possibility of segregation for non-GM products going toward sensitive importing countries. The results of our simulations first show that the gains associated with the adoption of GM food crops largely exceed any type of potential trade losses these countries may incur. Adopting GM crops also allows net importing countries to greatly reduce their imports. Overall, we find that GM rice is bound to be the most advantageous crop for the four countries. Second, we find that segregation of non-GM crops can help reduce any potential trade loss for GM adopters, such as India, that want to keep export opportunities in sensitive countries, even with a 5 percent segregation cost. Lastly, we find that the opportunity cost of segregation is much larger for sensitive importing countries than for countries adopting new GM crops, which suggests that sensitive importers will have the incentive to invest in separate non-GM marketing channels if exporting countries like India decide to adopt GM food crops." from Authors' Abstract

Suggested Citation

  • Gruere, Guillaume & Bouet, Antoine & Mevel, Simon, 2007. "Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines," IFPRI discussion papers 740, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:740
    as

    Download full text from publisher

    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/125283/filename/125284.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. You, Liangzhi & Wood, Stanley, 2006. "An entropy approach to spatial disaggregation of agricultural production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 329-347, October.
    3. Anderson, Kym & Yao, Shunli, 2001. "China, GMOs and World Trade in Agricultural and Textile Products," Conference papers 330922, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    5. Elbehri, Aziz & Macdonald, Steve, 2004. "Estimating the Impact of Transgenic Bt Cotton on West and Central Africa: A General Equilibrium Approach," World Development, Elsevier, vol. 32(12), pages 2049-2064, December.
    6. Yudelman, Montague & Ratta, Annu & Nygaard, David, 1998. "Pest management and food production: looking to the future," 2020 vision discussion papers 25, International Food Policy Research Institute (IFPRI).
    7. Guillaume P. Gruère & Mark W. Rosegrant, 2008. "Assessing the Implementation Effects of the Biosafety Protocol's Proposed Stringent Information Requirements for Genetically Modified Commodities in Countries of the Asia Pacific Economic Cooperation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 214-232.
    8. 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.
    9. 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.
    10. Jagdish Bhagwati, 1958. "Immiserizing Growth: A Geometrical Note," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(3), pages 201-205.
    11. Kym Anderson & Shunli Yao, 2003. "China, Gmos And World Trade In Agricultural And Textile Products," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 157-169, June.
    12. Paarlberg, Robert L., 2002. "The real threat to GM crops in poor countries: consumer and policy resistance to GM foods in rich countries," Food Policy, Elsevier, vol. 27(3), pages 247-250, June.
    13. Pohl Nielsen, Chantal & Robinson, Sherman & Thierfelder, Karen, 2001. "Genetic Engineering and Trade: Panacea or Dilemma for Developing Countries," World Development, Elsevier, vol. 29(8), pages 1307-1324, August.
    14. Hareau, Guy Gaston & Norton, George W. & Mills, Bradford F. & Peterson, Everett B., 2004. "Potential Benefits Of Transgenic Rice In Asia: A General Equilibrium Approach," 2004 Annual meeting, August 1-4, Denver, CO 20334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. 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.
    16. Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
    17. Anderson, Kym & Jackson, Lee Ann & Valenzuela, Ernesto, 2006. "GM Cotton Adoption, Recent and Prospective: A Global CGE Analysis of Economic Impacts," CEPR Discussion Papers 5568, C.E.P.R. Discussion Papers.
    18. Kym Anderson & Lee Ann Jackson, 2005. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 14(3), pages 385-410, September.
    19. van Meijl, Hans & van Tongeren, Frank, 2002. "International Diffusion of Gains from Biotechnology and the European Union’s Common Agricultural Policy," Conference papers 331038, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers 158, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    2. Guillaume P. Gruère & Simon Mevel & Antoine Bouët, 2009. "Balancing productivity and trade objectives in a competing environment: should India commercialize GM rice with or without China?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 459-475, July.
    3. Frisvold, George & Reeves, Jeanne, 2015. "Genetically Modified Crops: International Trade And Trade Policy Effects," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-13, April.
    4. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
    5. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, June.
    6. Kitou, Elisavet & Philippidis, George, 2010. "A quantitative economic assessment of a Canada-EU Comprehensive Economic Trade Agreement," Conference papers 331998, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2008. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global Computable General Equilibrium Analysis of Economic Impacts," Economic Development and Cultural Change, University of Chicago Press, vol. 56(2), pages 265-296, January.
    8. 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.
    9. Antoine Bouët & Guillaume P. Gruère, 2011. "Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 260-279.
    10. Das, Gouranga Gopal, 2005. "Information age to genetic revolution: Embodied technology transfer and assimilation — A tale of two technologies," MPRA Paper 37250, University Library of Munich, Germany, revised 2006.
    11. Amrita Chatterjee & Sanjib Pohit & Arpita Ghose, 2016. "Trade and Distributional Impacts of Genetically Modified Crops in India: A CGE Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 381-407, August.
    12. Chang, Ching-Cheng & Hsu, Shih-Hsun & Wu, Chia-Hsuan, 2004. "An Economy-Wide Analysis Of Gm Food Labeling Policies In Taiwan," 2004 Annual meeting, August 1-4, Denver, CO 19929, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    14. Anderson, Kym & Jackson, Lee Ann, 2004. "GM food technology abroad and its implications for Australia and New Zealand," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58365, Australian Agricultural and Resource Economics Society.
    15. 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.
    16. Antoine Bouet & Guillaume Gruère, 2010. "Refining opportunity cost estimates of not adopting GM cotton : An application in seven sub-saharan african countries," Larefi Working Papers 201002, Larefi, Université Bordeaux 4.
    17. 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.
    18. Bchir, Mohamed Hedi & Bouet, Antoine, 2009. "Which tariff aggregator for trade modelers?," Conference papers 331888, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Anderson, Kym & Jackson, Lee Ann, 2004. "Implications of genetically modified food technology policies for Sub-Saharan Africa," Policy Research Working Paper Series 3411, The World Bank.
    20. Kym Anderson, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series DP2003-25, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Genetically modified food; International trade; Developing countries; Segregation;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:740. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.