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GTAP Resources: Resource Display

GTAP Resource #1046

"Potential Effects of Biotechnology on the World Rice Economy"
by Yao, Shunli


Abstract
Motivation:

The next generation of biotech research is focusing not just on increasing farmer profitability by improving agronomic traits but also on breeding for attributes desired by consumers. Although not yet commercially available, a new variety of rice, known as 'Golden Rice', has been genetically engineered to contain a higher level of vitamin A. Thus in contrast with current commercial applications of biotech to crops, this new rice variety aims directly at benefiting consumers rather than producers. More specifically, it aims at improving the health of poor people in developing countries that rely on rice as their main staple food. This paper analyses the potential economic effects of such an innovation over the next decade in an environment of heated debates about the risks and benefits of these developments. Those debates are delaying the development and adoption of the technology by countries such as China and, in extreme cases, may lead to trade disputes in the WTO.

Objective and Methodology:

This paper will use the version 4 GTAP database to first project the world economy to 2010, considering the world economic growth, the completion of Uruguy Round trade liberalization, China in WTO and the formation of China-ASEAN Free Trade Area. Based upon this projected 2010 world economy, it explores the economic consequences of that technology without and with adoption moratoriums by some countries and import barriers to GMOs by others.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Version:
Created: Yao, S. (4/30/2002)
Updated: Batta, G. (7/31/2007)
Visits: 1,197
- Agricultural policies
- Technological change


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