Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90535
Authors: 
Kathage, Jonas
Qaim, Matin
Year of Publication: 
2011
Series/Report no.: 
Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 80
Abstract: 
While several studies have shown that genetically modified Bt cotton can benefit smallholder farmers economically, the sustainability of these effects is still unclear and debated controversially between biotechnology proponents and critics. We use unique panel data of 533 cotton farmers, collected in India between 2002 and 2008, to analyze Bt impacts on cotton yield, profit, and household living standards. Results from fixed effects models show that the adoption of Bt cotton is associated with a net yield gain of 24% and a profit increase of 50%. These benefits per acre were stable over time; there are even indications that they increased. Given rising adoption rates, the aggregate benefits grew substantially. We further show that Bt cotton adoption raised consumption expenditures, our measure of household living standards, by 18% during the 2006-2008 period. We conclude that Bt cotton has created large and sustainable benefits, which contribute to economic development in India.
Subjects: 
biotechnology
Bt cotton
genetically modified crops
farm survey
household living standards
India
technology adoption
JEL: 
I31
Q12
Q13
Q16
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.