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International Diffusion of Gains from Biotechnology and the European Union’s Common Agricultural Policy

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  • van Meijl, Hans
  • van Tongeren, Frank

Abstract

This paper analyses the impact of adopting or rejecting genetically modified GM crops in the EU, taking into account the European Union's Common Agricultural Policy (CAP). In this paper the productivity impact of GMs differs across crops, as it takes factor biased technology change into account. The transfer of knowledge across countries is modelled as a process of endogenous knowledge spillovers. Analyses with a multi-region applied general equilibrium model shows that the CAP protects farm income and production from not adopting GM crops in the EU but has costs in terms of welfare. The EU will forgo substantial benefits if it banned GM imports.
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  • van Meijl, Hans & van Tongeren, Frank, 2002. "International Diffusion of Gains from Biotechnology and the European Union’s Common Agricultural Policy," Conference papers 331038, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331038
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    References listed on IDEAS

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    1. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 423-449, September.
    2. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    3. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(4), pages 445-470, December.
    4. Hertel, Thomas W & Masters, William A & Elbehri, Aziz, 1998. "The Uruguay Round and Africa: A Global, General Equilibrium Analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 7(2), pages 208-236, July.
    5. André Sapir, 1993. "Comment on The European community: a case of successful integration?," ULB Institutional Repository 2013/8338, ULB -- Universite Libre de Bruxelles.
    6. Arvind Panagariya & Jagdish Bhagwati, 1996. "The Economics of Preferential Trade Agreements," Books, American Enterprise Institute, number 51856, September.
    7. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    8. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331, Elsevier.
    9. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    10. Chantal Nielsen & Kym Anderson, 2001. "Global market effects of alternative European responses to genetically modified organisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 320-346, June.
    11. Guyomard, Herve & le Mouel, Chantal & Surry, Yves, 1993. "Les effets de la reforme de la PAC sur les marches cerealiers communautaires: Analyse exploratoire," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 27.
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    Cited by:

    1. Anderson, Kym & Damania, Richard & Jackson, Lee Ann, 2004. "Trade Standards and the Political Economy of Genetically Modified Food," CEPR Discussion Papers 4526, C.E.P.R. Discussion Papers.
    2. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    3. Anderson, Kym & Jackson, Lee Ann, 2005. "Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 771-788.
    4. van Tongeren, Frank W. & Huang, Jikun, 2004. "China'S Food Economy In The Early 21st Century; Development Of China'S Food Economy And Its Impact On Global Trade And On The Eu," Report Series 29093, Wageningen University and Research Center, Agricultural Economics Research Institute.
    5. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
    6. Anderson, Kym & Jackson, Lee Ann, 2004. "Standards, Trade And Protection: The Case Of Gmos," 2004 Annual meeting, August 1-4, Denver, CO 20282, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Kym Anderson, 2006. "Interactions Between Trade Policies and GM Food Regulations," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 125-143, Springer.
    8. Gruere, Guillaume & Bouet, Antoine & Mevel, Simon, 2007. "Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines," IFPRI discussion papers 740, International Food Policy Research Institute (IFPRI).
    9. Kym Anderson & Lee Ann Jacskon, 2004. "GM Food Crop Technology and Trade Measures: Some Economic Implications for Australia and New Zealand," Centre for International Economic Studies Working Papers 2004-08, University of Adelaide, Centre for International Economic Studies.
    10. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October.
    11. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank W., 2003. "Economic Impacts Of Genetically Modified Crops In China," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25883, International Association of Agricultural Economists.
    12. Kym Anderson, 2010. "Economic Impacts of Policies Affecting Crop Biotechnology and Trade," Centre for International Economic Studies Working Papers 2010-12, University of Adelaide, Centre for International Economic Studies.
    13. Anderson, Kym & Jackson, Lee Ann, 2004. "GM food technology abroad and its implications for Australia and New Zealand," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58365, Australian Agricultural and Resource Economics Society.
    14. Diez, Maria Del Carmen Fernandez, 2005. "Welfare Measures and Mandatory Regulation for Transgenic Food in the European Union: A Theoretical Framework for the Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24472, European Association of Agricultural Economists.
    15. Das, Gouranga Gopal, 2005. "Information age to genetic revolution: Embodied technology transfer and assimilation — A tale of two technologies," MPRA Paper 37250, University Library of Munich, Germany, revised 2006.

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