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Economic Effects of Agricultural Biotechnology Research in the Presence of Price-Distorting Policies
( Kym Anderson ),( Chantal Nielsen ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2004 Journal of Economic Integration Vol.19 No.2
The economic welfare implications of some countries using new genetically modified varieties in crop production will depend on which countries choose to adopt them and on whether others (notably Western Europe) ban their importation. They also depend on existing (non-GMO-specific) agricultural policies in affected markets. This paper uses a well-received empirical economywide model of the global economy (GTAP) to quantify the effects of selected countries enjoying an assumed degree of productivity growth from adopting GMO maize and soybean. It does so first by leaving existing distortionary policies in place and then assuming agricultural policies in Western Europe are completely liberalised. In both cases we investigate the effects of Western Europe refraining from using GMO technology in its own farm production but without versus with a ban on imports of GM products. The results suggest that (a) such an import ban would have a large adverse effect on economic welfare, particularly in Western Europe itself, and (b) while estimated global economic welfare benefits from the new biotechnology are not greatly reduced by Europe`s traditional price-distorting policies, the reductions in technology gains are concentrated in non-European countries.
Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation
( Kym Anderson ),( Lee Ann Jackson ),( Chantal Pohl Nielsen ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2005 Journal of Economic Integration Vol.20 No.4
The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of poor people in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Asia, including its impact on rice producers and other poor households. It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the very considerable farm productivity gains (even if extended beyond GM rice to include those from adopting other GM grains and oilseeds) could be exceeded by the welfare gains resulting from the potential health-enhancing attributes of golden rice, which would boost the productivity of unskilled workers among Asia`s poor.