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Labour savings of Roundup Ready maize: Impact on cost and input substitution for South African smallholders

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  • Regier, Gregory K
  • Dalton, Timothy J

Abstract

This study examines the impact of genetically modified maize on labour, cost and input substitutability for smallholders in South Africa. Producers of Roundup Ready® (RR) maize use significantly less child, female and male labour than non-RR producers, resulting in lower costs despite significantly higher herbicide, seed and fertiliser costs. A treatment effects model controlling for selection bias shows that the entire cost advantage and more can be attributed to the Roundup Ready® technology. These results are supported using a nonparametric kernel density estimator. Elasticities of factor substitution indicate strong substitutability among inputs; however, a lack of statistical significance limits the interpretation of the results.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:afjare:183893
    DOI: 10.22004/ag.econ.183893
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    1. Shao, Qianqian & Drabik, Dusan & Gouse, Marnus & Wesseler, Justus, 2019. "Food self-sufficiency and GM regulation under conflicting interests: the case of GM maize in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 59(1), October.
    2. Gouse, Marnus & Sengupta, Debdatta & Zambrano, Patricia & Zepeda, José Falck, 2016. "Genetically Modified Maize: Less Drudgery for Her, More Maize for Him? Evidence from Smallholder Maize Farmers in South Africa," World Development, Elsevier, vol. 83(C), pages 27-38.
    3. Ardinesh Kambanje & Saul Ngarava & Abyssinia Mushunje & Amon Taruvinga, 2018. "Labour Dynamics in Climate and Techno Reliant Small Scale Maize Production," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 262-276.

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