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The Impact of Bt Cotton on Poor Households in Rural India

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  • Arjunan Subramanian
  • Matin Qaim

Abstract

The impact of genetically modified (GM) crops on the poor in developing countries is still the subject of controversy. While previous studies have examined direct productivity effects of Bacillus thuringiensis (Bt) cotton and other GM crops, little is known about wider socioeconomic outcomes. We use a microeconomic modelling approach and comprehensive survey data from India to analyse welfare and distribution effects in a typical village economy. Bt cotton adoption increases returns to labour, especially for hired female workers. Likewise, aggregate household incomes rise, including for poor and vulnerable farmers. Hence, Bt cotton contributes to poverty reduction and rural development.

Suggested Citation

  • Arjunan Subramanian & Matin Qaim, 2010. "The Impact of Bt Cotton on Poor Households in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 295-311.
    • Handle: RePEc:taf:jdevst:v:46:y:2010:i:2:p:295-311
    DOI: 10.1080/00220380903002954
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    References listed on IDEAS

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    1. Gandhi, Vasant P. & Namboodiri N V, 2006. "The Adoption and Economics of Bt Cotton in India: Preliminary Results from a Study," IIMA Working Papers WP2006-09-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    Cited by:

    1. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Muhammad Ihtisham & Badar Naseem Siddiqui & Shemei Zhang, 2022. "Can Cooperative Supports and Adoption of Improved Technologies Help Increase Agricultural Income? Evidence from a Recent Study," Land, MDPI, vol. 11(3), pages 1-18, March.
    2. Ramaswami, Bharat & Pray, Carl E. & Lalitha, N., 2012. "The Spread of Illegal Transgenic Cotton Varieties in India: Biosafety Regulation, Monopoly, and Enforcement," World Development, Elsevier, vol. 40(1), pages 177-188.
    3. Katharina Najork & Susheel Gadela & Padmarao Nadiminti & Sreeramulu Gosikonda & Raghava Reddy & Ejnavarzala Haribabu & Markus Keck, 2021. "The Return of Pink Bollworm in India’s Bt Cotton Fields: Livelihood Vulnerabilities of Farming Households in Karimnagar District," Progress in Development Studies, , vol. 21(1), pages 68-85, January.
    4. Ragasa, Catherine, 2012. "Gender and Institutional Dimensions of Agricultural Technology Adoption: A Review of Literature and Synthesis of 35 Case Studies," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126747, International Association of Agricultural Economists.
    5. Vijesh Krishna & Matin Qaim & David Zilberman, 2016. "Transgenic crops, production risk and agrobiodiversity," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 137-164.
    6. Kouser, Shahzad & Qaim, Matin & Abedullah, 2015. "Bt cotton and employment effects for female agricultural laborers in Pakistan: An application of double-hurdle model," 2015 Conference, August 9-14, 2015, Milan, Italy 212014, International Association of Agricultural Economists.
    7. Smyth, Stuart J. & Falck-Zepeda, Jose & Ludlow, Karinne, 2016. "The Costs of Regulatory Delays for Genetically Modified Crops," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 17(2), pages 1-23, December.
    8. Klara Fischer & Camilla Eriksson, 2016. "Social Science Studies on European and African Agriculture Compared: Bringing Together Different Strands of Academic Debate on GM Crops," Sustainability, MDPI, vol. 8(9), pages 1-17, August.
    9. Krishna, Vijesh V. & Qaim, Matin, 2012. "Bt cotton and sustainability of pesticide reductions in India," Agricultural Systems, Elsevier, vol. 107(C), pages 47-55.
    10. Anderson Jock R. & Birner Regina & Nagarajan Latha & Naseem Anwar & Pray Carl E., 2021. "Private Agricultural R&D: Do the Poor Benefit?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 19(1), pages 3-14, May.
    11. Kabunga, Nassul S. & Dubois, Thomas & Qaim, Matin, 2014. "Impact of tissue culture banana technology on farm household income and food security in Kenya," Food Policy, Elsevier, vol. 45(C), pages 25-34.
    12. Ramasundaram, P. & Suresh, A. & Samuel, Josily & Wankhade, Shwetal, 2014. "Welfare Gains from Application of First Generation Biotechnology in Indian Agriculture: The Case of Bt Cotton," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(1).
    13. Kouser, Shahzad & Qaim, Matin, 2011. "Impact of Bt cotton on pesticide poisoning in smallholder agriculture: A panel data analysis," Ecological Economics, Elsevier, vol. 70(11), pages 2105-2113, September.
    14. Shah, Deepak K., 2012. "Bt Cotton in India: A Review of Adoption, Government Interventions and Investment Initiatives," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(3), pages 1-11.
    15. Sarthak Gaurav & Srijit Mishra, 2012. "To Bt or not to Bt? Risk and uncertainty considerations in technology assessment," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    16. Farhan, Mohd. & Khan, Tufail Ahmad, 2018. "Economic Viability of G.M. Crops in India: A Comparative Study between G. M. Cotton and Non-G.M. Cotton in Punjab," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 73(04), October.
    17. 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.
    18. Birthal, Pratap S., 2013. "Application of Frontier Technologies for Agricultural Development," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(1), pages 1-19.
    19. John Baffes, 2011. "Cotton Subsidies, the WTO, and the ‘Cotton Problem’," The World Economy, Wiley Blackwell, vol. 34(9), pages 1534-1556, September.
    20. Amrita Chatterjee & Arpita Ghose, 2016. "Consumer’s Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach," Working Papers 2016-137, Madras School of Economics,Chennai,India.
    21. Klara Fischer & Elisabeth Ekener-Petersen & Lotta Rydhmer & Karin Edvardsson Björnberg, 2015. "Social Impacts of GM Crops in Agriculture: A Systematic Literature Review," Sustainability, MDPI, vol. 7(7), pages 1-23, July.
    22. Kurup, Suresh A. & Reddy, A. Amarender & Singh, Dharm Raj & Praveen, K.V, 2021. "Risks in Rainfed Agriculture and Adaptation Strategies in India: Profile and Socio-Economic Correlates," 2021 Conference, August 17-31, 2021, Virtual 315127, International Association of Agricultural Economists.
    23. Krishna, Vijesh V. & Qaim, Matin, 2011. "Pesticide Reduction Sustainability of Bt Technology in India," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114696, European Association of Agricultural Economists.
    24. Chellattan Veettil, Prakashan & Krishna, Vijesh V. & Qaim, Matin, 2014. "Bt Cotton and Ecosystem Impacts of Pesticide Reductions," GlobalFood Discussion Papers 180977, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    25. Katharina Najork & Jonathan Friedrich & Markus Keck, 2022. "Bt cotton, pink bollworm, and the political economy of sociobiological obsolescence: insights from Telangana, India," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(3), pages 1007-1026, September.

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