[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/fpr/tmddps/77.html
   My bibliography  Save this paper

Genetically modified foods, trade, and developing countries

Author

Listed:
  • Nielsen, Chantal Pohl
  • Thierfelder, Karen
  • Robinson, Sherman
Abstract
This paper analyzes price, production and trade consequences of changing consumer preferences regarding the use of genetically modified organisms (GMOs) in food production. The analytical framework used is an empirical global general equilibrium model, in which the entire food processing chain - from primary crops through livestock feed to processed foods - is segregated into genetically modified (GM) and non-GM lines of production. This model is used to analyze the implications of widespread use of genetically engineered crops in some regions whilst consumers in Western Europe and High- income Asia adopt a critical attitude toward GM foods. Two different representations of consumer preference changes are illustrated: (1) a change in price sensitivity: i.e. consumer demand is less sensitive to a decline in the price of GM foods relative to non-GM varieties, and (2) a structural demand shift: for a given price ratio consumers simply demand less of the GM variety relative to the non-GM variety. This analysis finds that developing countries adjust their trade patterns in response to preference changes in important trading partner countries. Non-GM varieties are diverted to GM-critical regions while GM varieties are sold to countries in which consumers are not sensitive to GM content. Furthermore, the development of segregated GM and non-GM food creates a potential niche market for producers if the non-GM characteristic can in fact be preserved and verified throughout the marketing system at reasonable costs.

Suggested Citation

  • Nielsen, Chantal Pohl & Thierfelder, Karen & Robinson, Sherman, 2001. "Genetically modified foods, trade, and developing countries," TMD discussion papers 77, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:tmddps:77
    as

    Download full text from publisher

    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/69290/filename/69291.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lewis, Jeffrey D. & Robinson, Sherman & Thierfelder, Karen, 1999. "After the negotiations: assessing the impact of free trade agreements in Southern Africa," TMD discussion papers 46, International Food Policy Research Institute (IFPRI).
    2. Pohl Nielsen, Chantal & Robinson, Sherman & Thierfelder, Karen, 2001. "Genetic Engineering and Trade: Panacea or Dilemma for Developing Countries," World Development, Elsevier, vol. 29(8), pages 1307-1324, August.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    4. Pray, Carl & Ma, Danmeng & Huang, Jikun & Qiao, Fangbin, 2001. "Impact of Bt Cotton in China," World Development, Elsevier, vol. 29(5), pages 813-825, May.
    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. Svetlana Edmeades & Melinda Smale, 2006. "A trait‐based model of the potential demand for a genetically engineered food crop in a developing economy," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 351-361, November.
    2. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
    3. Mayer, Thierry & Zignago, Soledad, 2004. "Market Access in International Trade: The North-South Divide and Regional Agreements," Conference papers 331195, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Honkatukia, Juha & Forsström, Juha & Tamminen, Eero, 2004. "Is there a Role for Domestic Energy Taxes under Emission Trading?," Conference papers 331206, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    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. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    2. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    3. Gruere, Guillaume & Bouet, Antoine & Mevel, Simon, 2007. "Genetically modified food and international trade: The case of India, Bangladesh, Indonesia, and the Philippines," IFPRI discussion papers 740, International Food Policy Research Institute (IFPRI).
    4. Elbehri, Aziz & Macdonald, Steve, 2004. "Estimating the Impact of Transgenic Bt Cotton on West and Central Africa: A General Equilibrium Approach," World Development, Elsevier, vol. 32(12), pages 2049-2064, December.
    5. Nielsen, Chantal Pohl & Thierfelder, Karen & Robinson, Sherman, 2003. "Consumer preferences and trade in genetically modified foods," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 777-794, November.
    6. Amrita Chatterjee & Sanjib Pohit & Arpita Ghose, 2016. "Trade and Distributional Impacts of Genetically Modified Crops in India: A CGE Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 381-407, August.
    7. Cretegny, Laurent, 2002. "The Key Role of the Milk Quota in the Reform of the Swiss Agricultural Policy," Conference papers 331039, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Frisvold, George & Reeves, Jeanne, 2015. "Genetically Modified Crops: International Trade And Trade Policy Effects," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-13, April.
    9. Anderson, Kym & Jackson, Lee Ann, 2004. "Implications of genetically modified food technology policies for Sub-Saharan Africa," Policy Research Working Paper Series 3411, The World Bank.
    10. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    11. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    12. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    13. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    14. Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
    15. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    17. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    18. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    19. Dhoubhadel, Sunil P. & Taheripour, Farzad & Stockton, Mathew C., 2016. "Livestock Demand, Global Land Use, and Induced Greenhouse Gas Emissions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235271, Agricultural and Applied Economics Association.
    20. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.

    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:fpr:tmddps:77. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.