Labour savings of Roundup Ready maize: Impact on cost and input substitution for South African smallholders

Gregory K Regier and Timothy Dalton

African Journal of Agricultural and Resource Economics, 2014, vol. 09, issue 3, 14

Abstract: This study examines the impact of genetically modified maize on labour, cost and input substitutability for smallholders in South Africa. Producers of Roundup Ready® (RR) maize use significantly less child, female and male labour than non-RR producers, resulting in lower costs despite significantly higher herbicide, seed and fertiliser costs. A treatment effects model controlling for selection bias shows that the entire cost advantage and more can be attributed to the Roundup Ready® technology. These results are supported using a nonparametric kernel density estimator. Elasticities of factor substitution indicate strong substitutability among inputs; however, a lack of statistical significance limits the interpretation of the results.

Keywords: Crop Production/Industries; Farm Management; Labor and Human Capital (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: Labor-savings of Roundup Ready Maize: Impact on Cost and Input Substitution for South African Smallholders (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:afjare:183893

DOI: 10.22004/ag.econ.183893

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