Village-wide effects of Agricultural Biotechnology: The case of Bt cotton in India
Subramanian A, Qaim M (2008). World Development.
This paper is relevant to the Socio-Economic, and Developing Country categories in the following areas:
| Crops: | Cotton |
| Traits: | Insect Res. (BT) |
| Countries: | India |
| Regions: | Asia |
| ImpactAreas: | Socio-Economic, and Developing Countries |
Abstract or Summary:
Previous studies on impacts of agricultural biotechnology have mostly focused on direct effects. We suggest an economy-wide framework to analyze income distribution aspects more carefully. For a village in India, a micro-social accounting matrix (SAM) is developed and used to simulate the effects of Bt cotton adoption. Overall, the technology is employment generating, although family labor in cotton production is saved. While substantial benefits are observed for small and large farmers, total household income effects are bigger for larger farms. This is mostly due to differential opportunity incomes of saved family labor. Some research and policy implications are discussed.
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