Economic impact of Bt corn in the Philippines

Abstract

A descriptive cost and returns analysis, a Cobb-Douglas Model and a two-step econometric procedure (that includes a Probit Model) were applied to a sample of corn farmers in selected regions of the Philippines in order to determine the economic impact of the Bt corn variety. With and without type of analysis were used to establish the difference between Bt corn and non-Bt corn farms in two cropping seasons. Results showed that yield and income of Bt corn farmers were significantly higher than those of the non-Bt corn farmers. In addition, expenditure on insecticide was significantly lower among Bt corn farmers. Results in all study locations showed a significant welfare effect of using Bt corn variety among corn farmers. Educational level and farm income were among the significant factors that influenced the adoption of Bt corn.