On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention |
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| Authors: | Arnab K. Basu Matin Qaim |
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| Affiliation: | Arnab K. Basu is associate professor of Economics and Public Policy, Department of Economics, College of William and Mary, Williamsburg. Matin Qaim is professor, Department of Agricultural Economics and Social Sciences, University of Hohenheim, Stuttgart, Germany. |
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| Abstract: | Given the proprietary nature of most genetically modified (GM) seed technologies, the question arises as to how farmers in developing countries can gain proper access. Based on empirical observations, a theoretical model is developed, focusing on farmers' adoption decisions in response to pricing strategies of a foreign monopolist and a domestic supplier of conventional seeds. Government interventions, such as seed subsidies, encouragement of R&D, and intellectual property rights (IPR) enforcement, and their effects on GM coverage and national welfare are analyzed. The possibility of the government obtaining a license to distribute GM seeds domestically through a transfer to the monopolist is also considered. |
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| Keywords: | GM Seeds IPR Enforcement R&D seed subsidy transfers |
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