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Trade and Distributional impact of Genetically Modified Crops in India: A CGE analysis

Author

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  • Chatterjee, Amrita
  • Ghose, Arpita
  • Pohit, Sanjib

Abstract

Against the background of declining agricultural productivity and a large population, genetically modified (GM) crops could play a key role in India. The current article uses a modified GTAP model to study empirically the overall impacts of the adoption of GM cotton, soybean, maize and rice on various sectors of the Indian economy through computable general equilibrium analysis. The impacts of a compulsory labelling policy and positive and negative preference shifts towards GM rice by Indian consumers are also analysed along with the effects on income distribution. The results indicate that productivity improvements from GM technology adoption in India have a significant positive impact on India’s production, trade and welfare. Even a possible ban on the import of GM rice from India by European Union (EU) will not have any negative welfare impact on Indian consumers, though the export of Indian rice will be much lower. JEL Classification: C68, D33, D61, F17, O11
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Suggested Citation

  • Chatterjee, Amrita & Ghose, Arpita & Pohit, Sanjib, 2010. "Trade and Distributional impact of Genetically Modified Crops in India: A CGE analysis," Conference papers 331996, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331996
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    Cited by:

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    2. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2020. "Tariff Escalation and Import Bans in the Economic Partnership Agreement between the EU and West Africa," Conference papers 333239, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Yao, Guolin & Hillberry, Russell, 2018. "Structural Gravity Model Estimates of Nested CES Import Demands for Soybeans," 2018 Annual Meeting, August 5-7, Washington, D.C. 274281, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    International Relations/Trade; Crop Production/Industries;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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