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Which Farmers Benefit the Most from Bt Corn Adoption in the Philippines? Estimating Heterogeneity Effects

Author

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  • Mutuc, Maria Erlinda M.
  • Rejesus, Roderick M.
  • Yorobe, Jose M., Jr.

Abstract

The potential contributions of new biotechnologies to sustainable food and income security have been the subject of widespread discussions around the turn of the twenty-first century. But distributional issues of which segments of GMO adopters benefit the most have not been given ample attention. Using propensity scores, we apply the (a) stratification-multilevel method of estimating heterogeneous treatment effects (SM-HTE); and the (b) matching-smoothing method of estimating heterogeneous treatment effects (MS-HTE) proposed by Xi, Brand, and Jann (2011). We find that the incidence of higher yields, lower insecticide use and reduced seed utilization in the Philippines diminishes progressively as a farmer’s propensity to adopt Bt corn increases. Farmers with a low propensity to adopt Bt are those who farm smaller, non-irrigated farms located farther from seed suppliers and farmers without previous training on pest identification. In most cases, while these farmers are typically poorer farmers in smaller parcels, cannot afford irrigation and are situated in remote areas away from easily accessible seed suppliers, there is no evidence, however, that profits differ across farmers with varying propensities to adopt the Bt variety.

Suggested Citation

  • Mutuc, Maria Erlinda M. & Rejesus, Roderick M. & Yorobe, Jose M., Jr., 2012. "Which Farmers Benefit the Most from Bt Corn Adoption in the Philippines? Estimating Heterogeneity Effects," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126363, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126363
    DOI: 10.22004/ag.econ.126363
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    References listed on IDEAS

    as
    1. Gerpacio, Roberta V. & Labios, Jocelyn D. & Labios, Romeo V. & Diangkinay, Emma I., 2004. "Maize in the Philippines: Production Systems, Constraints, and Research Priorities," Maize Production Systems Papers 7650, CIMMYT: International Maize and Wheat Improvement Center.
    2. Ben Jann, 2010. "Heterogeneous treatment-effect analysis," German Stata Users' Group Meetings 2010 03, Stata Users Group.
    3. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    4. Mendoza, Meyra Sebello & Rosegrant, Mark W., 1995. "Pricing behavior in Philippine corn markets: implications for market efficiency," Research reports 101, International Food Policy Research Institute (IFPRI).
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