Publication:
Trade, Standards, and the Political Economy of Genetically Modified Food

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dc.contributor.authorJackson, Lee Ann
dc.contributor.authorAnderson, Kym
dc.contributor.authorDamania, Richard
dc.date.accessioned2013-06-24T15:49:31Z
dc.date.available2013-06-24T15:49:31Z
dc.date.issued2004-09-01
dc.description.abstractA common-agency lobbying model is developed to help understand why North America and the European Union have adopted such different policies toward genetically modified (GM) food. Results show that when firms (in this case farmers) lobby policy makers to influence standards and consumers and environmentalists care about the choice of standard, it is possible that increased competition from abroad can lead to strategic incentives to raise standards, not just lower them as shown in earlier models. We show that differences in comparative advantage in the adoption of GM crops may be sufficient to explain the trans-Atlantic difference in GM policies. On the one hand, farmers in a country with a comparative advantage in GM technology can gain a strategic cost advantage by lobbying for lax controls on GM production and usage at home and abroad. On the other hand, when faced with greater competition, the optimal response of farmers in countries with a comparative disadvantage in GM adoption may be to lobby for more-stringent GM standards. Thus it is rational for producers in the EU (whose relatively small farms would enjoy less gains from the new biotechnology than broad-acre American farms) to reject GM technologies if that enables them and/or consumer and environmental lobbyists to argue for restraints on imports from GM-adopting countries. This theoretical proposition is supported by numerical results from a global general equilibrium model of GM adoption in America without and with an EU moratorium.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/09/5126874/trade-standards-political-economy-genetically-modified-food
dc.identifier.doi10.1596/1813-9450-3395
dc.identifier.urihttps://hdl.handle.net/10986/14144
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3395
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE IMPACTS
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURE
dc.subjectBIOTECHNOLOGY
dc.subjectCLIMATIC CONDITIONS
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSUMER PREFERENCES
dc.subjectCONSUMERS
dc.subjectCOST FUNCTIONS
dc.subjectCOST SAVINGS
dc.subjectCROP PRODUCTION
dc.subjectCROPS
dc.subjectDEVELOPING COUNTRIES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC MODELS
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC WELFARE
dc.subjectECONOMISTS
dc.subjectENVIRONMENTAL COSTS
dc.subjectENVIRONMENTAL EFFECTS
dc.subjectENVIRONMENTAL IMPACT
dc.subjectENVIRONMENTAL IMPACTS
dc.subjectENVIRONMENTAL POLICY
dc.subjectEQUILIBRIUM
dc.subjectEQUIVALENT VARIATION
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFARMERS
dc.subjectFARMS
dc.subjectFOOD POLICY RESEARCH
dc.subjectFOOD PRODUCTION
dc.subjectFUTURE RESEARCH
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectHOUSEHOLDS
dc.subjectHUNGER
dc.subjectIMPORTS
dc.subjectINCOMES
dc.subjectINDUSTRIAL ECONOMICS
dc.subjectINNOVATIONS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT INCENTIVES
dc.subjectLAND USE
dc.subjectLOBBYISTS
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectNATURAL ENVIRONMENT
dc.subjectPOLICY DECISIONS
dc.subjectPOLICY MAKERS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLLUTION
dc.subjectPRICE DECLINES
dc.subjectPRODUCERS
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC GOODS
dc.subjectQUALITY STANDARDS
dc.subjectREGULATORY REGIMES
dc.subjectRENT SEEKING
dc.subjectRESOURCE ALLOCATION
dc.subjectSAFETY
dc.subjectSTATIC ANALYSIS
dc.subjectTERMS OF TRADE
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADE BARRIERS
dc.subjectVOTERS
dc.subjectWEALTH
dc.subjectWELFARE EFFECTS
dc.subjectWILLINGNESS TO PAY
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO
dc.titleTrade, Standards, and the Political Economy of Genetically Modified Fooden
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleTrade, Standards, and the Political Economy of Genetically Modified Food
okr.date.doiregistration2025-04-10T10:12:20.949427Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/09/5126874/trade-standards-political-economy-genetically-modified-food
okr.globalpracticeSocial Protection and Labor
okr.guid310411468765314748
okr.identifier.doi10.1596/1813-9450-3395
okr.identifier.externaldocumentum000009486_20040914111306
okr.identifier.internaldocumentum5126874
okr.identifier.reportWPS3395
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/09/14/000009486_20040914111306/Rendered/PDF/wps3395Standards.pdfen
okr.topicEconomic Theory and Research
okr.topicEnvironmental Economics and Policies
okr.topicAgricultural Knowledge and Information Systems
okr.topicSocial Protections and Labor::Labor Policies
okr.topicHealth Economics and Finance
okr.topicCrops and Crop Management Systems
okr.topicHealth
okr.topicNutrition and Population
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isAuthorOfPublication952f550f-cf8c-5d8d-9ae5-d0208ea5edd1
relation.isAuthorOfPublication374e883f-482b-5642-b498-0897f3333484
relation.isAuthorOfPublication.latestForDiscovery374e883f-482b-5642-b498-0897f3333484
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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