Comparative Advantage in Demand: Experimental Evidence of Preferences for Genetically Modified Food in the United States and European Union

The United States (US) exports more than US$6 billion in agricultural commodities to the European Union(EU) each year, but one issue carries the potential to diminish this trade: use of biotechnology in food production. The EU has adopted more stringent policies towards biotechnology than the US. Understanding differences in European and American policies towards genetically modified (GM) foods requires a greater understanding of consumers’ attitudes and preferences. This paper reports results from the first large‐scale, cross‐Atlantic study to analyse consumer demand for genetically modified food in a non‐hypothetical market environment. We strongly reject the frequent if convenient assumption in trade theory that consumer preferences are identical across countries: the median level of compensation demanded by English and French consumers to consume a GM food is found to be more than twice that in any of the US locations. Results have important implications for trade theory, which typically focuses on differences in specialization, comparative advantage and factor endowments across countries, and for on‐going trade disputes at the World Trade Organization.     

新农业革命与农业的21世纪

战后60年代第一次农业革命（绿色革命）的兴起·显著地推动了世界经济的发展。近年来，生物技术革命的风起云涌，又引起一场新农业革命（白色革命）的悄然兴起。新农业革命（基于白色农业）必将导致农业结构从自然型向人工型转换，从而在21世纪内将实现现代农业转向“未来大农业”的结构重组。21世纪必将是农业的新世纪。     

Alternate signs of life: The growth of biotechnology industries in Shanghai and Bangalore

This paper explores the emergence of biotechnology centers in Shanghai and Bangalore by comparing their development to best practices in the literature for biotechnology cluster growth and development. Interviews with over fifty biotech companies and related institutions in China and India indicate that these regions are developing alternate models of low cost manufacturing and services that build on the current local base of knowledge and expertise. The ability to convert research into successful commercial activity was identified in both regions. The strong research capacity, private sector funding, and entrepreneurial environment deemed critical best practices were limited. New growth theory is used to explain these alternate approaches to technological and social change.     

The perception of biotechnology in agro-forestry: The opinion of undergraduates and researchers

Genetically modified organisms (GMOs) cropping promoted by different researchers, and the subsequent crisis regarding the safety of food derived from them, has resulted in strong public mistrust towards the authorities, both scientific and political. The aim of this work is to investigate the perception of Italian undergraduates and researchers towards the introduction of GMOs in agro-forestry. The factors determining attitudes towards GMOs were examined by means of 66 questions divided into three units: Knowledge, Opinon, Trust. Anagrafic and socio-cultural information were also analyzed. Data was processed through a multivariate analysis approach. The hierarchical clustering on undergraduates and researchers allowed to distinguish clusters of respondents skilled in biotechnology from those skilled in off-topic disciplines. Principal component analysis and K-means demonstrated that the positive or negative opinion toward GMOs, as for undergraduates, does not depend on their knowledge, but it is associated with the level of trust in the institutions. On the contrary, for researchers, it is related to their expertise level, without any linkage to trust in the institutions. This type of study may represent a key step for understanding the social, economic and scientific components underlying the choices of citizens, communities and society about GMOs.     

Shift of the short-term temperature mortality relationship by a climate factor - some evidence necessary to take account of in estimating the health effect of global warming

Several studies have reported a 'V'-shaped relationship between short-term temperature and mortality rates, characterized by mortality rates that are higher when the temperature is extremely low or high than when the temperature is moderate. To quantify the effect of adaptation to a certain climate on this V-shaped short-term temperature-mortality relationship, we studied the prefecture-specific relationship between daily maximum temperature and mortality rates for 65+-years-old Japanese from 1972 to 1990. For both genders, the optimum daily maximum temperature (OT) category at which the mortality rate was minimum ranged from 23C-28 C to 33+C, and the OT level became lower when the climate became colder. The mean OT level was lower for women than for men by 1.7C. The mortality rate at the OT was almost constant across prefectures, regardless of the climate. From the results, we considered that the adaptation effect on the short-term temperature-mortality relationship is mainly described by the 'horizontal shift model': the V-shape moves horizontally according to the climate. This 'shift' should be taken into account in estimating the health effect of global warming, and the model would be useful for the estimation.     

Bias from Farmer Self‐Selection in Genetically Modified Crop Productivity Estimates: Evidence from Indian Data

In the continuing debate over the impact of genetically modified (GM) crops on farmers of developing countries, it is important to accurately measure magnitudes such as farm‐level yield gains from GM crop adoption. Yet most farm‐level studies in the literature do not control for farmer self‐selection, a potentially important source of bias in such estimates. We use farm‐level panel data from Indian cotton farmers to investigate the yield effect of GM insect‐resistant cotton. We explicitly take into account the fact that the choice of crop variety is an endogenous variable which might lead to bias from self‐selection. A production function is estimated using a fixed‐effects model to control for selection bias. Our results show that efficient farmers adopt Bacillus thuringiensis (Bt) cotton at a higher rate than their less efficient peers. This suggests that cross‐sectional estimates of the yield effect of Bt cotton, which do not control for self‐selection effects, are likely to be biased upwards. However, after controlling for selection bias, we still find that there is a significant positive yield effect from adoption of Bt cotton that more than offsets the additional cost of Bt seed.     

If we label it, will they care? The effect of GM-ingredient labelling on consumer responses

More than 60% of foods in North American supermarkets contain GM ingredients. While North American consumers seem less concerned about GM foods than Europeans and Japanese, many consumer activists argue that consumers have a “right to know” if what they eat has GM ingredients. Will informative labelling of GM foods lead to major shifts in buying patterns? An experimental study found minimal effects of GM labelling overall but significant differential reactions to GM-labelled products across consumers with differing levels of consumer activism, perceived benefits of genetic engineering, and interest in novel foods with consumer benefits.     

Feeding the famine? American food aid and the GMO debate in Southern Africa

The inclusion of genetically modified maize in food aid shipments to Southern Africa during the 2002 food crisis rekindled debates over agricultural biotechnology. As the region edged ever closer to famine – putting the lives to some 14 million Africans at risk – corporate pundits, government officials and biotech’s critics debated the health and environmental dangers posed by the new technology.By situating the decision to send genetically modified maize to Southern Africa in the context of US–European debates over agricultural biotechnology, it becomes clear that the promotion of biotechnology has nothing to do with ending hunger in the region. Indeed, American food aid shipments to Southern Africa have little to do with the famine at all. Instead, I argue that US food aid policy following the 2002 crisis was intended to promote the adoption of biotech crops in Southern Africa, expanding the market access and control of transnational corporations and undermining local smallholder production thereby fostering greater food insecurity on the Continent.     

How do internal capabilities and external partnerships affect innovativeness?

How do a firm’s internal capabilities and external partnerships contribute to its product and process innovativeness? How do their impacts differ? Based on the theoretical framework of exploitation and exploration, we develop an integrative model linking the impact of both internal capabilities and external partnerships on product and process innovativeness. Survey responses from Taiwanese biotechnology firms indicate that research and development (R&;D), marketing, and manufacturing capabilities have different effects on product and process innovativeness. Of the four types of external partnerships, only partnerships with universities and research institutes seem to add value, whereas partnerships with suppliers, customers, and competitors do not contribute to innovativeness. Moreover, marketing capability and customer partnerships have a positive interaction effect on product innovativeness, while manufacturing capability and supplier partnerships have a positive interaction effect on process innovativeness.