Hostname: page-component-8448b6f56d-xtgtn Total loading time: 0 Render date: 2024-04-18T06:59:48.147Z Has data issue: false hasContentIssue false
  • English
  • Français

Impact Assessment of Bt Corn Adoption in the Philippines

Published online by Cambridge University Press:  26 January 2015

Maria Erlinda M. Mutuc ,
Roderick M. Rejesus ,
Suwen Pan  and
Jose M. Yorobe Jr
Maria Erlinda M. Mutuc
Affiliation:
Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX
Roderick M. Rejesus
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC
Suwen Pan
Affiliation:
World Agricultural Economic and Environmental Services, Columbia, MO
Jose M. Yorobe Jr
Affiliation:
Department of Agricultural Economics, University of the Philippines at Los Baños, Philippines
Get access

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.

Keywords

Btcensoringcornfarm level impactsgenetically modified cropspesticide usetechnology adoptionQ12Q16
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 1 , February 2012 , pp. 117 - 135
Copyright
Copyright © Southern Agricultural Economics Association 2002

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baute, T.S., Sears, M.K., and Schaafsma, A.W.. “Use of Transgenic Bacillus thuringiensis Berliner Corn Hybrids to Determine the Direct Economic Impact of the European Corn Borer (Lepidoptera: Crambidae) on Field Corn in Eastern Canada.” Journal of Economic Entomology 95(2002):57–64.CrossRefGoogle ScholarPubMed
Belasco, E., Ghosh, S.K., and Goodwin, B.K.. “A Multivariate Evaluation of Ex-Ante Risks Associated with Fed Cattle Production.” American Journal of Agricultural Economics 91(2009):431–43.CrossRefGoogle Scholar
Bernard, J.T., Bouthillier, L., Catimel, J., and Gelinas, N.. “An Integrated Model of Quebec-Ontario-U.S. Northeast Softwood Lumber Markets.” American Journal of Agricultural Economics 79(1997):987–1000.CrossRefGoogle Scholar
Borsch-Supan, A., and Hajivassiliou, V.A.. “Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models.” Journal of Econometrics 58(1993):347–68.CrossRefGoogle Scholar
Burrows, T.M. “Pesticide Demand and Integrated Pest Management: A Limited Dependent Variable Analysis.” American Journal of Agricultural Economics 65(1983):806–10.CrossRefGoogle Scholar
Cabanilla, L.S. “Bt Corn in the Philippines: How Much Will Farmers Expect to Gain”. Paper presented in the Philippine Agricultural Economics and Development Association Convention, Quezon City, Philippines, October 12, 2004.Google Scholar
Chavas, J., and Kim, K.. “A Heteroskedastic Multivariate Tobit Analysis of Price Dynamics in the Presence of Price Floors.” American Journal of Agricultural Economics 86(2004): 576–93.CrossRefGoogle Scholar
Chemical Industries Association of the Philippines. Agrichemicals and Fertilizers Industry. Internet site: http://spik-ph.org/index.php/fhe-industry/agrichemicals-fertilizers-industry/ (Accessed April 10, 2009).Google Scholar
Chen, K., and Chen, C.. “Cross Product Censoring in a Demand System with Limited Dependent Variables: A Multivariate Probit Model Approach.” Staff Paper 00-02, Department of Rural Economy, University of Alberta, 2002.Google Scholar
Crost, B., Shavani, B., Bennett, R., and Morse, S.. “Bias from Farmer Self-Selection in Genetically Modified Crop Productivity Estimates: Evidence from Indian Data.” Journal of Agricultural Economics 58(2007):24–36.CrossRefGoogle Scholar
Davidson, R., and MacKinnon, J.G.. “Several Tests for Model Specification in the Presence of Alternative Hypotheses.” Econometrica 49(1981):781–93.CrossRefGoogle Scholar
Diewert, W.E., and Ostensoe, L.. “Flexible Functional Forms and Global Curvature Conditions.” Dynamic Econometric Modeling. Barnett, W., Berndt, E., and White, H., eds. Cambridge, U.K.: Cambridge University Press, 1988.Google Scholar
Diewert, W.E., and Wales, T.J.. “Flexible Functional Forms with Global Curvature Conditions.” Econometrica 55(1987):43—68.CrossRefGoogle Scholar
Dillehay, B.L., Roth, G.W., Calvin, D.D., Karatochvil, R.J., Kuldau, G.A., and Hyde, J.A.. “Performance of Bt Corn Hybrids, their Near Isolines, and Leading Corn Hybrids in Pennsylvania and Maryland.” Agronomy Journal 96(2004):818–24.CrossRefGoogle Scholar
Duffy, M.Who Benefits from Biotechnology. Chicago, IL: American Seed Trade Association, 2001.Google Scholar
Feder, G., Just, R., and Zilbeiman, D.. “Adoption of Agricultural Innovations in Developing Countries: A Survey.” Economic Development and Cultural Change 33(1985):255–98.CrossRefGoogle Scholar
Fernandez-Cornejo, J., Hendricks, C., and Mishra, A.. “Technology Adoption and Off-farm Household Income: The Case of Herbicide-Tolerant Soybeans.” Journal of Agricultural and Applied Economics 37(2005):549—63.CrossRefGoogle Scholar
Fernandez-Cornejo, J., Klotz-Ingram, C., and Jans, S.. “Farm-Level Effects of Adopting Herbicide-Tolerant Soybeans in the U.S.A.” Journal of Agricultural and Applied Economics 34(2002): 149–63.CrossRefGoogle Scholar
Fernandez-Cornejo, J., and Li, J.. “The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn.” Selected Paper, 2005 Agricultural and Applied Economics Association Annual Meetings, Providence, RI, July 24-27, 2005.Google Scholar
Gerpacio, R.V., Labios, J.D., Labios, R.V., and Diangkinay, E.I.. Maize in the Philippines: Production Systems, Constraints, and Research Priorities. Mexico: International Maize and Wheat Improvement Center, 2004.Google Scholar
Geweke, J. “Efficient Simulation from the Multivariate Normal and Student-t Distributions Subject to Linear Constraints.” Computer Science and Statistics: Proceedings of the Twenty-Third Symposium on the Interface. Keramidas, E.M., ed. Fairfax: Interface Foundation of North America, Inc., 1991.Google Scholar
GMO Compass. Internet site: http://www.gmo-compass.org (Accessed April 7, 2009).Google Scholar
Gouse, M., Pray, C.E., Kirsten, J., and Schimmelpfenning, D.. “Three Seasons of Subsistence Insect-Resistant Maize in South Africa: Have Smallholders Benefited?” AgBio-Forum 9(2006): 15–22.Google Scholar
Gouse, M., Pray, C.E., Kirsten, J., and Schimmelpfenning, D. “A GM Subsistence Crop in Africa: The Case of Bt White Maize in South Africa.” International Journal of Biotechnology 7(2005): 84–94.CrossRefGoogle Scholar
Greene, W.H.Econometric Analysis, 5th ed. Upper Saddle, NJ: Prentice Hall, 2003.Google Scholar
Heckman, J.J. “Sample Selection Bias as a Specification Error.” Econometrica 47(1979): 153–61.CrossRefGoogle Scholar
Huang, J., Hu, R., Rozelle, S., Qiao, F., and Pray, C.. “Transgenic Varieties and Productivity of Smallholder Cotton Farmers in China.” The Australian Journal of Agricultural and Resource Economics 46(2002): 367–87.CrossRefGoogle Scholar
Huffman, W. “An Econometric Methodology for Multiple-Output Agricultural Technology: An Application of Endogenous Switching Models.” Agricultural Productivity: Measurement and Explanation. Washington, DC: Resources for the Future. Capalbo, S. and Antle, J., eds. 1988.Google Scholar
Keane, M.P. “A Computationally Practical Simulation Estimator for Panel Data.” Econometrica 62(1994):95–116.CrossRefGoogle Scholar
Kirimi, L., and Swinton, S.M.. “Estimating Cost Efficiency among Maize Producers in Kenya and Uganda.” Selected Paper Presentation, American Agricultural Economics Association Annual Meeting, Denver, CO, August 1-4, 2004.Google Scholar
Klemick, H., and Lichtenberg, E.. “Pesticide Use and Fish Harvests in Vietnamese Rice Agro-ecosystems.” American Journal of Agricultural Economics 90(2008): 1–14.CrossRefGoogle Scholar
Lee, L.F., and Pitt, M.M.. “Microeconomic Models of Rationing, Imperfect Markets and Non-Negativity Constraints.” Journal of Econometrics 36(1987):89–110.CrossRefGoogle Scholar
Lee, L.F., and Pitt, M.M.. “Microeconomic Demand Systems with Binding Nonnegativity Constraints: The Dual Approach.” Econometrica 54(1986): 1237–42.CrossRefGoogle Scholar
Lee, L.F., and Pitt, M.M.. “Microeconometric Models of Consumer and Producer Decisions with Limited Dependent Variables.” Discussion paper, University of Minnesota, Department of Economics, 1984.Google Scholar
Maddala, G.Limited Dependent and Qualitative Variables in Econometrics. New York, NY: Cambridge University Press, 1983.CrossRefGoogle Scholar
Marra, M., Pardey, P., and Alston, J.. “The Payoffs to Transgenic Field Crops: An Assessment of the Evidence.” Ag Bio Forum 5(2002):43–50.Google Scholar
McBride, W., and El-Osta, H.S.. “Impacts of the Adoption of Genetically Engineered Crops on Farm Financial Performance.” Journal of Agricultural and Applied Economics 34(2002): 175–91.CrossRefGoogle Scholar
Mendoza, M.S., Brorsen, B.W., and Rose-grant, M.W.. “Aggregate Corn Area Response under Risk: Some Implications for Price Stabilization Programs.” Journal of Philippine Development 35(1992):99–111.Google Scholar
Mendoza, M.S., and Rosegrant, M.W.. Pricing Behavior in Philippine Corn Markets: Implications for Market Efficiency. Washington, DC: International Food Policy Research Institute, 1995.Google Scholar
Morallo-Rejesus, B., and Punzalan, E.G.. Corn. Los Baños: National Crop Protection Center. University of the Philippines at Los Baños, 2002.Google Scholar
Morse, S., Bennett, R., and Ismael, Y.. “Inequality and GM Crops: A Case-Study of Bt Cotton in India.” AgBioForum 10(2007):44–50.Google Scholar
Perali, F., and Chavas, J.. “Estimation of Censored Demand Equations from Large Cross-Section Data.” American Journal of Agricultural Economics 82(2000): 1022–37.CrossRefGoogle Scholar
Philippine Department of Agriculture Biotech Team. Personal Communication, May 2011.Google Scholar
Pilcher, C.D., Rice, M.E., Higgins, R.A., Steffey, K.L., Hellmich, R.L., Wifkowski, J., Calvin, D., Ostlie, K.R., and Gray, M.. “Biotechnology and the European Corn Borer: Measuring Historical Farmer Perceptions and Adoption of Transgenic Bt Corn as a Pest Management Strategy.” Journal of Economic Entomology 95(2002):878—92.CrossRefGoogle Scholar
Pudney, S.Modelling Individual Choice. Oxford, UK: Basil Blackwell, 1989.Google Scholar
Qaim, M., and de Janvry, A.. “Bt Cotton and Pesticide Use in Argentina: Economic and Environmental Effects.” Environment and Development Economics 10(2005): 179–200.CrossRefGoogle Scholar
Qaim, M., and de Janvry, A.. “Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina.” American Journal of Agricultural Economics 85(2003):814–28.CrossRefGoogle Scholar
Rice, M.E., and Pilcher, C.D.. “Potential Benefits and Limitations of Transgenic Bt Corn for Management of the European Corn Borer (Lepidoptera: Crambidae).” American Entomologist 44(1998):75–78.CrossRefGoogle Scholar
Rigobon, R., and Stoker, T.. “Estimation with Censored Regressors: Basic Issues.” International Economic Review 48(2007): 1441–58.CrossRefGoogle Scholar
Roodman, D. “Estimating Fully Observed Recursive Mixed-Process Models with cmp,” Working Papers 168, Center for Global Development, 2009.CrossRefGoogle Scholar
Rosegrant, M., and Herdt, R.. “Simulating the Impacts of Credit Policy and Fertilizer Subsidy on Central Luzon Rice Farms, the Philippines.” American Journal of Agricultural Economics 63(1981):655–65.CrossRefGoogle Scholar
Roumasset, J.A.Rice and Risk: Decision Making Among Low-Income Farmers. Amsterdam, North-Holland: Elsevier, 1976.Google Scholar
Shankar, B., and Thirtle, C.. “Pesticide Productivity and Transgenic Cotton Technology: The South African Smallholder Case.” Journal of Agricultural Economics 56(2005):97—116.CrossRefGoogle Scholar
Shonkwiler, J.S., and Yen, S.T.. “Two-Step Estimation of a Censored System of Equations.” American Journal of Agricultural Economics 81(1999):972–82.CrossRefGoogle Scholar
Shumway, R. “Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops.” American Journal of Agricultural Economics 65(1983):748–60.CrossRefGoogle Scholar
Smith, J., Umali, G., Rosegrant, M., and Mandac, A.M.. “Risk and Nitrogen Use on Rainfed Rice: Bicol, Philippines.” Fertilizer Research 21(1989):113–23.CrossRefGoogle Scholar
Tauchmann, H. “Efficiency of Two-Step Estimators for Censored Systems of Equations: Shonkwiler and Yen Reconsidered.” Applied Economics 37(2005):367–74.CrossRefGoogle Scholar
Williamson, T., Hauer, G., and Lückert, M.K.. “A Restricted Leontief Profit Function Model of the Canadian Lumber and Chip Industry: Potential Impacts of US Countervail and Kyoto Ratification.” Canadian Journal of Forest Research 34(2004):1833–44.CrossRefGoogle Scholar
Wortmann, C., Ferguson, R., Hergert, G., Shaver, T., and Shapiro, C.. Do Bt Corn Hybrids Require More Fertilizer? University of Nebraska-Lincoln Extension Crop Watch, January 17, 2011. Internet site: http://cropwatch.unl.edu/web/cropwatch/archive?articleID=4424846.Google Scholar
Wu, F. “An Analysis of Bt Corn's Benefits and Risks for National and Regional Policymakers Considering Bt Corn Adoption.” International Journal of Technology and Globalisation Special Issue on Genetically Modified Crops in Developing Countries — Institutional and Policy Challenges 2(2006): 115–36.Google Scholar
Yen, S.T., Lin, B., and Smallwood, D.M.. “Quasi and Simulated Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States.” American Journal of Agricultural Economics 85(2003):458–78.CrossRefGoogle Scholar
Yorobe, J.M. Jr., and Quicoy, C.B.. “Economic Impact of Bt Corn in the Philippines.” The Philippine Agricultural Scientist 89(2006): 258–67.Google Scholar
Yorobe, J.M. Jr., and Sumayao, B.R.. “Determinants of Adoption of Bt (Bacillus thuringiensis) Corn in the Philippines.” Unpublished manuscript, University of the Philippines at Los Baños, 2006.Google Scholar