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Recent and Prospective Adoption of Genetically Modified Cotton: A Global CGE Analysis of Economic Impacts

Anderson K, Valenzuela E, Jackson LA (2006). World Bank Policy Research Working Paper 3917.

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This paper is relevant to the Agronomic, Socio-Economic, and Developing Country categories in the following areas:

Crops:Cotton
Traits:Insect Resistance, and Insect Res. (BT)
Countries:Global
Regions:EU, Middle East, South America, North America, Europe, Australia / NZ, Asia, and Africa
ImpactAreas:Agronomic, Socio-Economic, and Developing Countries

Abstract or Summary:

This paper provides estimates of the economic impact of initial adoption of genetically modified (GM) cotton and of its potential impacts beyond the few countries where it is currently common. Use is made of the latest version of the GTAP database and model. Our results suggest that by following the lead of China and South Africa, adoption of GM cotton varieties by other developing countries � especially in Sub-Saharan Africa � could provide even larger proportionate gains to farmer and national welfare than in those firstadopting countries. Furthermore, those estimated gains are shown to exceed those from a successful campaign under the WTO�s Doha Development Agenda to reduce/remove cotton subsidies and import tariffs globally.

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