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GM Rice Adoption: Implications for Welfare and Poverty Alleviation

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  • Anderson, Kym
  • Jackson, Lee Ann
  • Nielsen, Chantal Pohl

Abstract

The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of poor people in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Asia, including its impact on rice producers and other poor households. It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the farm productivity gains (even if extended beyond GM rice to include those from adopting other GM grains and oilseeds) could be dwarfed by the welfare gains resulting from the potential health-enhancing attributes of golden rice, which would boost the productivity of unskilled workers among Asia’s poor.

Suggested Citation

  • Anderson, Kym & Jackson, Lee Ann & Nielsen, Chantal Pohl, 2004. "GM Rice Adoption: Implications for Welfare and Poverty Alleviation," Conference papers 331199, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:331199
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    References listed on IDEAS

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    3. World Bank, 2002. "Global Economic Prospects and the Developing Countries 2002," World Bank Publications - Books, The World Bank Group, number 14050.
    4. 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.
    5. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
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