[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v44y2012i01p117-135_00.html
   My bibliography  Save this article

Impact Assessment of Bt Corn Adoption in the Philippines

Author

Listed:
  • Mutuc, Maria Erlinda M.
  • Rejesus, Roderick M.
  • Pan, Suwen
  • Yorobe, Jose M.
Abstract
This article examines the impact of Bt corn adoption in the Philippines using an econometric approach that addresses simultaneity, selection, and censoring problems. Although previous literature emphasizes the importance of simultaneity and selection problems, this is the first study that addresses the issue of censoring in estimating the effects of Bt corn adoption at the farm in a developing country context. We show that Bt corn adoption provides modest but statistically significant increases in farm yields and profits. Furthermore, our results provide some evidence of inference errors that can potentially arise when censoring in the pesticide application variable is ignored in the estimation procedures.

Suggested Citation

  • Mutuc, Maria Erlinda M. & Rejesus, Roderick M. & Pan, Suwen & Yorobe, Jose M., 2012. "Impact Assessment of Bt Corn Adoption in the Philippines," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 117-135, February.
    • Handle: RePEc:cup:jagaec:v:44:y:2012:i:01:p:117-135_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1074070800000201/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
    2. Heather Klemick & Erik Lichtenberg, 2008. "Pesticide Use and Fish Harvests in Vietnamese Rice Agroecosystems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 1-14.
    3. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    4. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    5. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    6. Qaim, Matin & De Janvry, Alain, 2005. "Bt cotton and pesticide use in Argentina: economic and environmental effects," Environment and Development Economics, Cambridge University Press, vol. 10(2), pages 179-200, May.
    7. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood, 2003. "Quasi- and Simulated-Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 458-478.
    8. Jean-Thomas Bernard & Luc Bouthillier & Jérôme Catimel & Nancy Gélinas, 1997. "An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 987-1000.
    9. Mark W. Rosegrant & Robert W. Herdt, 1981. "Simulating the Impacts of Credit Policy and Fertilizer Subsidy on Central Luzon Rice Farms, the Philippines," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 655-665.
    10. Benjamin Crost & Bhavani Shankar & Richard Bennett & Stephen Morse, 2007. "Bias from Farmer Self-Selection in Genetically Modified Crop Productivity Estimates: Evidence from Indian Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 24-36, February.
    11. Jean-Paul Chavas & Kwansoo Kim, 2004. "A Heteroskedastic Multivariate Tobit Analysis of Price Dynamics in the Presence of Price Floors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 576-593.
    12. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
    13. Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
    14. Thomas M. Burrows, 1983. "Pesticide Demand and Integrated Pest Management: A Limited Dependent Variable Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 806-810.
    15. repec:phd:pjdevt:jpd_1992_vol__xix_no__2-d is not listed on IDEAS
    16. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    17. Fernandez-Cornejo, Jorge & Hendricks, Chad & Mishra, Ashok K., 2005. "Technology Adoption and Off-Farm Household Income: The Case of Herbicide-Tolerant Soybeans," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-15, December.
    18. Huffman, Wallace E., 1988. "An Econometric Methodology for Multiple-Output Agricultural Technology: An Application of Endogenous Switching Models," Staff General Research Papers Archive 11003, Iowa State University, Department of Economics.
    19. David Roodman, 2009. "Mixed-process models with cmp," DC09 Stata Conference 11, Stata Users Group.
    20. Eric J. Belasco & Sujit K. Ghosh & Barry K. Goodwin, 2007. "A Multivariate Evaluation of Ex ante Risks Associated with Fed Cattle Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 431-443.
    21. Fernandez-Cornejo, Jorge & Li, Jiayi, 2005. "The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn," 2005 Annual meeting, July 24-27, Providence, RI 19318, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Huang, Jikun & Hu, Ruifa & Rozelle, Scott & Qiao, Fangbin & Pray, Carl E., 2002. "Transgenic varieties and productivity of smallholder cotton farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), pages 1-21.
    23. Harald Tauchmann, 2005. "Efficiency of two-step estimators for censored systems of equations: Shonkwiler and Yen reconsidered," Applied Economics, Taylor & Francis Journals, vol. 37(4), pages 367-374.
    24. David Roodman, 2009. "Estimating Fully Observed Recursive Mixed-Process Models with cmp," Working Papers 168, Center for Global Development.
    25. Mendoza, Meyra Sebello & Rosegrant, Mark W., 1995. "Pricing behavior in Philippine corn markets: implications for market efficiency," Research reports 101, International Food Policy Research Institute (IFPRI).
    26. Kirimi, Lilian & Swinton, Scott M., 2004. "Estimating Cost Efficiency Among Maize Producers In Kenya And Uganda," 2004 Annual meeting, August 1-4, Denver, CO 20396, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    27. C. Richard Shumway, 1983. "Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 748-760.
    28. Bhavani Shankar & Colin Thirtle, 2005. "Pesticide Productivity and Transgenic Cotton Technology: The South African Smallholder Case," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 97-116, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Regier, Gregory K & Dalton, Timothy J, 2014. "Labour savings of Roundup Ready maize: Impact on cost and input substitution for South African smallholders," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(3), pages 1-14, August.
    2. Chowdhury, Mohammad Ashraful Ferdous & Meo, Muhammad Saeed & Uddin, Ajim & Haque, Md. Mahmudul, 2021. "Asymmetric effect of energy price on commodity price: New evidence from NARDL and time frequency wavelet approaches," Energy, Elsevier, vol. 231(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2012. "Fifteen Years Later: Examining the Adoption of Bt Corn Varieties by U.S. Farmers," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124257, Agricultural and Applied Economics Association.
    2. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., 2014. "Do lower yielding farmers benefit from Bt corn? Evidence from instrumental variable quantile regressions," Food Policy, Elsevier, vol. 44(C), pages 285-296.
    3. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    4. Pofahl, Geoffrey M. & Capps, Oral, Jr. & Clauson, Annette L., 2005. "Demand for Non-Alcoholic Beverages: Evidence From The ACNielsen Home Scan Panel," 2005 Annual meeting, July 24-27, Providence, RI 19441, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    6. Sanglestsawai, Santi & Rodriguez, Divina Gracia P. & Rejesus, Roderick M. & Yorobe, Jose M., 2017. "Production Risk, Farmer Welfare, and Bt Corn in the Philippines," Agricultural and Resource Economics Review, Cambridge University Press, vol. 46(3), pages 507-528, December.
    7. Suntornpithug, Pasu & Kalaitzandonakes, Nicholas G., 2009. "Understanding the Adoption of Cotton Biotechnologies in the US: Firm Level Evidence," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1), pages 1-17.
    8. Fabrizio balli & Silvia Tiezzi, 2008. "Households Consumption Patterns and Equivalence Scales in Italy: 1997-2004," Department of Economics University of Siena 535, Department of Economics, University of Siena.
    9. Joshua D. Detre & Hiroki Uematsu & Ashok K. Mishra, 2011. "The influence of GM crop adoption on the profitability of farms operated by young and beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 41-61, May.
    10. Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2011. "Revisiting the Impact of Bt Corn Adoption by U.S. Farmers," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103327, Agricultural and Applied Economics Association.
    11. Ma, Xingliang & Smale, Melinda & Spielman, David J. & Zambrano, Patricia & Nazli, Hina & Zaidi, Fatima, 2016. "Varietal integrity, damage abatement, and productivity: Evidence from the cultivation of Bt cotton in Pakistan:," IFPRI discussion papers 1520, International Food Policy Research Institute (IFPRI).
    12. Oliver Musshoff & Norbert Hirschauer, 2011. "A behavioral economic analysis of bounded rationality in farm financing decisions," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 62-83, May.
    13. Fadhuile, Adelaide & Lemarie, Stephane & Pirotte, Alain, 2011. "Pesticides Uses in Crop Production: What Can We Learn from French Farmers Practices?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103654, Agricultural and Applied Economics Association.
    14. Fabrizio Balli & Silvia Tiezzi, 2010. "Equivalence scales, the cost of children and household consumption patterns in Italy," Review of Economics of the Household, Springer, vol. 8(4), pages 527-549, December.
    15. Kouser, Shahzad & Qaim, Matin & Abedullah, 2015. "Bt cotton and employment effects for female agricultural laborers in Pakistan: An application of double-hurdle model," 2015 Conference, August 9-14, 2015, Milan, Italy 212014, International Association of Agricultural Economists.
    16. Xingliang Ma & Melinda Smale & David J. Spielman & Patricia Zambrano & Hina Nazli & Fatima Zaidi, 2017. "A Question of Integrity: Variants of Bt Cotton, Pesticides and Productivity in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 366-385, June.
    17. Adélaïde Fadhuile & Stéphane Lemarié & Alain Pirotte, 2016. "Disaggregating the Demand for Pesticides: Does it Matter?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 223-252, June.
    18. Peltner, Jonas & Thiele , Silke, 2021. "Elasticities of Food Demand in Germany – A Demand System Analysis Using Disaggregated Household Scanner Data," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.
    19. Thomas, Alban & Chakir, Raja, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," TSE Working Papers 20-1066, Toulouse School of Economics (TSE).
    20. Gedikoglu, Haluk, 2013. "A Comprehensive Analysis of Adoption of Energy Crops, GM Crops and Conservation Practices," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142928, Southern Agricultural Economics Association.

    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jagaec:v:44:y:2012:i:01:p:117-135_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.