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Diffusion of Bt Cotton in India: Impact of Seed Prices and Technological Development

Author

Listed:
  • Anchal Arora

    (Centre for International Trade and development)

  • Sangeeta Bansal

    (Centre for International Trade and development)

Abstract

Recent studies have analyzed the adoption of Bt cotton in the light of government seed price interventions. According to one view, reduction in seed prices enabled the farmers to buy seeds at lower prices and this resulted in the sudden surge in area under Bt cotton. The other view holds that seed price interventions had little impact on the adoption rates rather these interventions might have negative implications for the company to innovate in future. Which of the two views characterizes adoption of Bt cotton in India? Using three variations of dynamic logistic model, this paper analyzes the impact of certain economic factors like seed prices, technological development, cotton prices on the diffusion of Bt cotton in India. We used a panel data set covering 9 major cotton growing states and the over the years from 2002 to 2008 and found that although seed prices were significant in impacting the diffusion rates but its impact was limited. This study also sheds light on the significance of technological development in impacting the diffusion rates.

Suggested Citation

  • Anchal Arora & Sangeeta Bansal, "undated". "Diffusion of Bt Cotton in India: Impact of Seed Prices and Technological Development," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 11-01, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    • Handle: RePEc:ind:citdwp:11-01
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    References listed on IDEAS

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    1. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
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    Cited by:

    1. Shah, Deepak K., 2012. "Bt Cotton in India: A Review of Adoption, Government Interventions and Investment Initiatives," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(3), pages 1-11.
    2. Sarthak Gaurav & Srijit Mishra, 2012. "To Bt or not to Bt? Risk and uncertainty considerations in technology assessment," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-001, Indira Gandhi Institute of Development Research, Mumbai, India.

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    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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