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Impact Assessment of Bt Corn Adoption in the Philippines

Published online by Cambridge University Press:  26 January 2015

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

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.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2002

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