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Rural Poverty and Employment Effects of Bt Cotton in India

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  • Subramanian, Arjunan
  • Qaim, Matin

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 analyze welfare and distribution effects in a typical village economy. Bt cotton adoption increases aggregate employment with interesting gender implications. Likewise, aggregate household incomes rise, including for poor and vulnerable farmers, highlighting that Bt cotton contributes to poverty reduction and rural development.

Suggested Citation

  • Subramanian, Arjunan & Qaim, Matin, 2009. "Rural Poverty and Employment Effects of Bt Cotton in India," 2009 Conference, August 16-22, 2009, Beijing, China 50555, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:50555
    DOI: 10.22004/ag.econ.50555
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. S.S. Kalamkar, 2013. "Biotechnology in Indian Agriculture: Review of Adoption and Performance of Bt Cotton," Millennial Asia, , vol. 4(2), pages 211-236, October.

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