Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex
Andrei Sobolevsky,
GianCarlo Moschini and
Harvey Lapan
Staff General Research Papers Archive from Iowa State University, Department of Economics
Abstract:
A partial equilibrium four-region world trade model for the soybean complex is developed in which Roundup Ready (RR) products are weakly inferior substitutes to conventional ones, RR seeds are priced at a premium, and costly segregation is necessary to separate conventional and biotech products. Solution of the calibrated model illustrates how incomplete adoption of RR technology arises in equilibrium. The United States, Argentina, Brazil, and the Rest of the World (ROW) all gain from the introduction of RR soybeans, although some groups may lose. The impacts of RR production or import bans by the ROW or Brazil are analyzed. U.S. price support helps U.S. farmers, despite hurting the United States and has the potential to improve world efficiency.
Date: 2002-12-10
New Economics Papers: this item is included in nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Published in American Journal of Agricultural Economics, August 2005, vol. 87 no. 3, pp. 621-644
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex (2005) 
Working Paper: Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex (2002) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:10098
Access Statistics for this paper
More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().