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On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention
Author(s) -
Basu Arnab K.,
Qaim Matin
Publication year - 2007
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.01005.x
Subject(s) - subsidy , enforcement , intellectual property , government (linguistics) , developing country , economic interventionism , license , business , genetically modified organism , public economics , intervention (counseling) , welfare , economics , industrial organization , economic growth , market economy , psychology , linguistics , philosophy , biochemistry , chemistry , psychiatry , politics , political science , computer science , law , gene , operating system
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.