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Is the economic benefit of Bt cotton dying away in China

Is the economic benefit of Bt cotton dying away in China Purpose – The purpose of this paper is to try to empirically answer whether the economic benefit of Bt cotton is dying away in China. As the development of the pest resistance and the outbreak of the secondary pest, it was believed that economic benefit of Bt cotton is dying away. And reduction of cotton sown area in recent years had been considered as one of the consequences. This study empirically estimates the impact of Bt cotton adoption on cotton sown area. Design/methodology/approach – This paper uses regression techniques based on provincial level data. In addition, the fixed-effects model is used to control the impact of those time-consistent variables. Finally, several scenarios are estimated for the robustness of the estimation results. Findings – This study shows that the adoption of Bt cotton has positive impact on cotton sown area. On the other hand, the increasing labor cost and decreasing cotton price might be the real reasons behind the decrease of cotton sown area. Originality/value – This, it is believed, is one of the first studies to empirically answer the impact of Bt cotton adoption on cotton sown area in China, using national representative data. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Is the economic benefit of Bt cotton dying away in China

China Agricultural Economic Review , Volume 7 (2): 15 – May 5, 2015

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1756-137X
DOI
10.1108/CAER-01-2013-0008
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to try to empirically answer whether the economic benefit of Bt cotton is dying away in China. As the development of the pest resistance and the outbreak of the secondary pest, it was believed that economic benefit of Bt cotton is dying away. And reduction of cotton sown area in recent years had been considered as one of the consequences. This study empirically estimates the impact of Bt cotton adoption on cotton sown area. Design/methodology/approach – This paper uses regression techniques based on provincial level data. In addition, the fixed-effects model is used to control the impact of those time-consistent variables. Finally, several scenarios are estimated for the robustness of the estimation results. Findings – This study shows that the adoption of Bt cotton has positive impact on cotton sown area. On the other hand, the increasing labor cost and decreasing cotton price might be the real reasons behind the decrease of cotton sown area. Originality/value – This, it is believed, is one of the first studies to empirically answer the impact of Bt cotton adoption on cotton sown area in China, using national representative data.

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: May 5, 2015

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