GTAP Resources: Resource Display
| GTAP Resource #3250 |
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"Trade and Distributional impact of Genetically Modified Crops in India: A CGE analysis" by Chatterjee, Amrita, Arpita Ghose and Sanjib Pohit Abstract In spite of the high success rate of Bt cotton in India ever since its commercial production in 2002, no other Genetically Modified (GM) crop has been approved by Genetic Engineering Approval Committee (GEAC) of India so far due to very strong opponents of biotechnology. The current paper, focusing exclusively on India, has studied empirically the effects of the adoption of GM cotton, soybean, maize and rice on various sectors of Indian economy using a modified GTAP model in presence of segregated production of GM and non-GM crops. The results indicate that the productivity improvement due to GM technology adoption in India has got significant positive impact on India’s production, trade and welfare. The important policy scenarios considered here are: a comparison of imposition and withdrawal of import tariff by India on vegetable oil & fat imported from other Asian countries, an introduction of labeling policy for domestically produced rice and also the effect of both positive and negative preference shift towards GM rice for Indian consumers. Moreover, the effects of a possible ban imposed on import of GM rice from India to EU are considered. Analyzing the income distributional effects, a common trend has been observed which shows that the real income of both skilled and unskilled labor rises with GM adoption, though maximum income benefit accrues to the skilled labor. Thus, the skilled-unskilled wage gap has aggravated, which is supporting the evidence documented in literature though. With imposition of import tariff there will be fall in real return to the factors of production. As far as the import ban scenario is concerned, the export of Indian rice will be much lower though it will not have any negative welfare impact on Indian consumers. Thus the macroeconomic overview of various scenarios gives an overall promising future of India if it adopts GM crops. |
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- Preferential trading arrangements - Asia (East) - Asia (Southeast) - Asia (South-Central) - Middle East - Africa (North) - Africa (Central) - Africa (East) - Africa (West) |
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Public Access  2010 Conference Paper (117.3 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
