Cotton, biotechnology, and economic development
During the past decade, cotton prices remained considerably below other agricultural prices (although they recovered toward the end of 2010). Yet, between 2000-04 and 2005-09 world cotton production increased 13 percent. This paper conjectures that biotechnology-induced productivity improvements increased supplies by China and India, which, in addition to keeping cotton prices low, aided these countries to cap-ture market share from (and cause losses to) non-users of biotechnology. By contrast, with a single exception, Africa has not adopted biotechnology and, not coincidentally, its cotton output declined by more than 20 percent between the first and second half of the past decade. The paper concludes that the development implications of biotechnology go beyond cotton and Africa. High energy prices have been an important driver of the recent commodity price boom. Therefore, investment and policy strategy responses to a cost-driven boom should be consistent with cost-saving alternatives. Biotechnology clearly meets this challenge.
|Date of creation:||01 Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Cashin & C John McDermott & Alasdair Scott, 1999.
"The myth of co-moving commodity prices,"
Reserve Bank of New Zealand Discussion Paper Series
G99/9, Reserve Bank of New Zealand.
- M. Ataman Aksoy & John C. Beghin, 2005.
"Global Agricultural Trade and Developing Countries,"
World Bank Publications,
The World Bank, number 7464, April.
- Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers Archive 12228, Iowa State University, Department of Economics.
- Anderson, Kym & Valenzuela, Ernesto & Jackson, Lee Ann, 2006.
"Recent and prospective adoption of genetically modified cotton : a global computable general equilibrium analysis of economic impacts,"
Policy Research Working Paper Series
3917, The World Bank.
- 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, pages 265-296.
- Deb, Partha & Trivedi, Pravin K & Varangis, Panayotis, 1996. "The Excess Co-movement of Commodity Prices Reconsidered," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(3), pages 275-91, May-June.
- Anderson, Kym & Valenzuela, Ernesto, 2006.
"WTO's Doha Cotton Initiative: A Tale of Two Issues,"
CEPR Discussion Papers
5567, C.E.P.R. Discussion Papers.
- Kym Anderson & Ernesto Valenzuela, 2007. "WTOÂ’s Doha Cotton Initiative: A Tale of Two Issues," Centre for International Economic Studies Working Papers 2007-06, University of Adelaide, Centre for International Economic Studies.
- Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications, The World Bank, number 9436, April.
- Kym Anderson & Will Martin, 2005.
"Agricultural Trade Reform and the Doha Development Agenda,"
Centre for International Economic Studies Working Papers
2005-17, University of Adelaide, Centre for International Economic Studies.
- Kym Anderson & Will Martin, 2005. "Agricultural Trade Reform and the Doha Development Agenda," The World Economy, Wiley Blackwell, vol. 28(9), pages 1301-1327, 09.
- Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889, April.
- Anderson, Kym & Martin, Will, 2005. "Agricultural trade reform and the Doha development agenda," Policy Research Working Paper Series 3607, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5896. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.