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On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention

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  • Arnab K. Basu
  • Matin Qaim

Abstract

Given the proprietary nature of most genetically modified (GM) seed technologies, the question arises as to how farmers in developing countries can gain proper access. Based on empirical observations, a theoretical model is developed, focusing on farmers' adoption decisions in response to pricing strategies of a foreign monopolist and a domestic supplier of conventional seeds. Government interventions, such as seed subsidies, encouragement of R&D, and intellectual property rights (IPR) enforcement, and their effects on GM coverage and national welfare are analyzed. The possibility of the government obtaining a license to distribute GM seeds domestically through a transfer to the monopolist is also considered. Copyright 2007, Oxford University Press.

Suggested Citation

  • Arnab K. Basu & Matin Qaim, 2007. "On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 784-804.
    • Handle: RePEc:oup:ajagec:v:89:y:2007:i:3:p:784-804
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01005.x
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    Cited by:

    1. Genti Kostandini & Bradford F. Mills & Steven Were Omamo & Stanley Wood, 2009. "Ex ante analysis of the benefits of transgenic drought tolerance research on cereal crops in low‐income countries," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 477-492, July.
    2. Shi, Guanming & Chavas, Jean-Paul, 2011. "The Effects of Vertical Organization on the Pricing of Differentiated Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-17, December.
    3. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    4. Khan, Shahbaz & Hanjra, Munir A., 2009. "Footprints of water and energy inputs in food production - Global perspectives," Food Policy, Elsevier, vol. 34(2), pages 130-140, April.
    5. Suprehatin, By & Umberger, Wendy J. & Yi, Dale & Stringer, Randy & Minot, Nicholas, 2015. "Can Understanding Indonesian Farmers’ Preferences for Crop Attributes Encourage their Adoption of High Value Crops?," 2015 Conference, August 9-14, 2015, Milan, Italy 212057, International Association of Agricultural Economists.
    6. Huaiyu Wang & Sushil Pandey & Lu Feng, 2020. "Econometric Analyses of Adoption and Household-Level Impacts of Improved Rice Varieties in the Uplands of Yunnan, China," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    7. Anchal Arora & Sangeeta Bansal, "undated". "Diffusion of Bt Cotton in India: Impact of Seed Prices and Technological Development," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 11-01, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    8. Supehatin & Umberger, Wendy J. & Yi, Dale & Stringer, Randy & Minot, Nicholas, 2015. "The Effect of Indonesian Farmer Preferences for Crop Attributes in the Adoption of Horticultural Crops: A Best-Worst Scaling Approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205453, Agricultural and Applied Economics Association.

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