On the distribution and adoption of genetically modified seeds in developing countries

Abstract

Given the proprietary nature of most genetically modified (GM) seed technologies, the question arises as to how farmers in developing countries can gain proper access to these innovations. Based on empirical observations, a theoretical model is developed which focuses on farmers? adoption decisions in response to the pricing strategies of a foreign patent holder and the government. If the government is able to commit to the announced policy, subsidizing the use of traditional seeds can increase coverage of GM technology and domestic welfare. The possibility of the government obtaining a license to distribute GM seeds domestically through a transfer to the monopolist is also considered.