On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention

Posted: 23 Jul 2007

See all articles by Arnab K. Basu

Arnab K. Basu

College of William and Mary - Department of Economics

Matin Qaim

University of Bonn; University of Hohenheim - Department of Agricultural Economics and Social Sciences

Abstract

Given the proprietary nature of most genetically modified (GM) seed technologies, the question arises as to how farmers in developing countries can gain proper access. Based on empirical observations, a theoretical model is developed, focusing on farmers' adoption decisions in response to pricing strategies of a foreign monopolist and a domestic supplier of conventional seeds. Government interventions, such as seed subsidies, encouragement of R&D, and intellectual property rights (IPR) enforcement, and their effects on GM coverage and national welfare are analyzed. The possibility of the government obtaining a license to distribute GM seeds domestically through a transfer to the monopolist is also considered.

Suggested Citation

Basu, Arnab K. and Qaim, Matin, On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention. American Journal of Agricultural Economics, Vol. 89, No. 3, pp. 784-804, August 2007. Available at SSRN: https://ssrn.com/abstract=1002117 or http://dx.doi.org/10.1111/j.1467-8276.2007.01005.x

Arnab K. Basu (Contact Author)

College of William and Mary - Department of Economics ( email )

Williamsburg, VA 23187-8795
United States
757-221-1318 (Phone)
757-221-1175 (Fax)

HOME PAGE: http://faculty.wm.edu/akbasu/

Matin Qaim

University of Bonn ( email )

Postfach 2220
53012 Bonn
Germany
+49 0 228 73 1872 (Phone)

University of Hohenheim - Department of Agricultural Economics and Social Sciences

70593 Stuttgart
Germany
+ 49 0711 459 2784 (Phone)
+ 49 0711 459 3762 (Fax)

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