Cotton, Biotechnology, and Economic Development

During the past decade, cotton prices remained considerably below other agricultural prices (although they recovered toward the end of 2010). Yet, between 2000-04 and 2005-09 world cotton production increased 13 percent. This paper conjectures that biotechnology-induced productivity improvements increased supplies by China and India, which, in addition to keeping cotton prices low, aided these countries to cap-ture market share from (and cause losses to) non-users of biotechnology. By contrast, with a single exception, Africa has not adopted biotechnology and, not coincidentally, its cotton output declined by more than 20 percent between the first and second half of the past decade. The paper concludes that the development implications of biotechnology go beyond cotton and Africa. High energy prices have been an important driver of the recent commodity price boom. Therefore, investment and policy strategy responses to a cost-driven boom should be consistent with cost-saving alternatives. Biotechnology clearly meets this challenge.

Bibliographic Details

Main Author:	Baffes, John
Language:	English
Published:	2011-12-01
Subjects:	AGRICULTURAL COMMODITIES, AGRICULTURAL CROPS, AGRICULTURAL PRICE, AGRICULTURAL PRICES, AGRICULTURAL PRODUCTION, ANIMAL FEED, BIOSAFETY, BIOTECHNOLOGY, BY-PRODUCTS, CARTEL, COCOA, COLLATERAL, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, CONSUMERS, COST REDUCTION, COTTON, COTTON GROWING, COTTON PRICE, COTTON PRICES, COTTON PRODUCTION, COTTON SECTOR, COTTON YIELDS, COVARIANCE MATRIX, CROP, CROPS, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC EFFECTS, ELASTICITY, ELECTRICITY, ENERGY PRICE, ENERGY PRICES, ENVIRONMENTAL CONSIDERATIONS, EQUIPMENT, EXPENDITURES, EXPORTS, FAIR, FAIR TRADE, FAO, FARM, FARMER, FARMERS, FARMS, FERTILIZERS, FIBERS, FINANCIAL INSTITUTIONS, FOOD PRICE, GENERAL EQUILIBRIUM ANALYSIS, GENETIC ENGINEERING, GENETIC RESOURCES, GLOBAL MARKET, GRAIN, GRAINS, GREEN REVOLUTION, GROSS MARGIN, INCOME, INNOVATION, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, LARGE-SCALE ADOPTION, LOW-INCOME COUNTRIES, MAIZE, MARKET FORCES, MARKET SHARE, MARKETING, MATERIAL, MODERN AGRICULTURE, MULTINATIONAL CORPORATIONS, OPEN ACCESS, OPPORTUNITY COST, OUTPUT, PER CAPITA INCOME, PESTICIDE, POLITICAL CONSIDERATIONS, POLITICAL ECONOMY, POOR FARMERS, PRICE INDEX, PRICE INDICES, PRICE MOVEMENTS, PRICE TRENDS, PRICE VOLATILITY, PRODUCTION COSTS, PRODUCTIVITY, PRODUCTIVITY IMPROVEMENTS, PRODUCTIVITY INCREASES, PUBLIC POLICY, PURCHASING, R&D, REGULATORY BODY, REGULATORY FRAMEWORK, REGULATORY REGIME, RENT SEEKING, RENT SEEKING BEHAVIOR, RESULTS, SAVINGS, SEED, SEED COMPANIES, SEED TECHNOLOGY, SEED VARIETIES, SEEDS, SOYBEANS, SUBSTITUTE, SUGARCANE, SUSTAINABLE AGRICULTURE, SUSTAINABLE DEVELOPMENT, TECHNICAL ASSISTANCE, TOBACCO, TOBACCO PLANTS, TRADE NEGOTIATIONS, TRANSMISSION, USERS, VEGETABLE OILS, WEB, WHEAT, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO, YIELD INCREASE, YIELDS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111205112253 https://hdl.handle.net/10986/3663
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