Adoption of genetically modified crops in South Africa : effects on wholesale maize prices

Show simple item record Abidoye, Babatunde O. Mabaya, Edward 2014-11-06T13:07:02Z 2014
dc.description.abstract The ability of genetically modified (GM) crops to increase yields and reduce use of pesticides is well established. Based on food security needs and the central role of agriculture, Africa may stand to benefit from green biotechnology given the low agricultural productivity and the looming food crises in most urban areas. However, the adoption of GM crops in Africa has been slow and limited to a handful of countries. The primary objective of this paper is to evaluate the impact of GM maize adoption in South Africa by looking at wholesale spot prices. We apply a threshold autoregressive model to time series data on the price of maize and GM adoption rates in South Africa to address the following questions: (1) Does the adoption of GM maize excite the growth rate of price of maize in South Africa; (2) Does the error variance of the maize price growth rate exhibit regime-switching behaviour to impact the volatility? The results show evidence that the adoption of GM maize influences the dynamics of the maize price growth rate in South Africa. Further, there is strong evidence that the error variance exhibits regime-switching behaviour with the posterior mean for the error variance in the first regime about twice as large as that of the second regime. en_US
dc.description.embargo 2015-02-27
dc.description.librarian hj2014 en_US
dc.description.sponsorship John Templeton Foundation en_US
dc.description.uri en_US
dc.identifier.citation Babatunde O Abidoye & Edward Mabaya (2014) Adoption of genetically modified crops in South Africa: Effects on wholesale maize prices, Agrekon: Agricultural Economics Research, Policy and Practice in Southern Africa, 53:1, 104-123, DOI: 10.1080/03031853.2014.887907. en_US
dc.identifier.issn 0303-1853 (print)
dc.identifier.issn 2078-0400 (online)
dc.identifier.other 10.1080/03031853.2014.887907
dc.language.iso en en_US
dc.publisher Routledge en_US
dc.rights © Agricultural Economics Association of South Africa. This is an electronic version of an article published in Agrekon, vol. 53, no. 1, pp. 104-123, 2014. doi : 10.1080/03031853.2014.887907. Agrekon is available online at : en_US
dc.subject Genetically modified (GM) crops en_US
dc.subject Wholesale maize prices en_US
dc.subject South Africa (SA) en_US
dc.subject Autoregressive model en_US
dc.title Adoption of genetically modified crops in South Africa : effects on wholesale maize prices en_US
dc.type Postprint Article en_US

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