July, 2009
Source:
Agricultural Economics,
Volume 40 Issue 4, Pages 459 - 475
Balancing productivity and
trade objectives in a competing environment: should India
commercialize GM rice with or without China?
Guillaume P. Gruère a,*, Simon Mevel b ,
Antoine Bouët c
a International Food Policy Research Institute, 2033 K Street
NW, Washington, DC 20006-1002, USA
b The World Bank, 1818 H
Street, NW, Washington, DC 20433, USA
c International Food
Policy Research Institute and Centre d'Analyse Théorique et des
Traitements de Données Economiques, Université de Pau et des
Pays de l'Adour (CATT/UPPA), Avenue du Doyen Poplawski, 64000
Pau, France
*Corresponding author. Tel.: +1-202-862-8156; fax:
+1-202-467-4439. E-mail
address:g.gruere@cgiar.org (G.P. Gruère).
Copyright © 2009 International Association of Agricultural
Economists
ABSTRACT
India is considering
approving genetically modified (GM) rice, but it fears
losing rice exports to sensitive countries with import
regulations on GM food, and may wait for China to lead the
way. Using a multiregion, computable general equilibrium
(CGE) model, we simulate the economic effects of introducing
GM rice in India with or without China in the presence of
labeling and import approval regulations of GM food in GM
sensitive importing countries. We find that the welfare
gains with GM rice in India would largely exceed any
potential export loss, and that the segregation of non-GM
rice could help reduce these minor losses. We also find no
significant first mover advantage for India or China on GM
rice. The opportunity cost of segregation of non-GM rice is
much larger for sensitive importers than for India, which
suggests that these importers would have the incentive to
pay for the cost of segregation.
Source:
http://www3.interscience.wiley.com/journal/122463385/abstract?CRETRY=1&SRETRY=0
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