The impact of Bt cotton on poor households in rural India

Subramanian A, Qaim M (2008). Nature Precedings hdl:10101/npre.2008.1812.1.

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

Abstract or Summary:

The impact of genetically modified (GM) crops on the poor in developing countries is still the subject of controversy. While previous studies have examined direct productivity effects of Bacillus thuringiensis (Bt) cotton and other GM crops, little is known about wider socioeconomic outcomes. We develop a microeconomic modeling approach and use comprehensive survey data from India to analyze welfare and distribution effects in a typical village economy. Bt cotton adoption increases aggregate employment with interesting gender implications. Likewise, aggregate household incomes rise, including for poor and vulnerable farmers, suggesting that Bt cotton contributes to poverty reduction and rural development.

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