Agricultural biotechnology has been widely used in the developed countries of the North. However, its value and benefit to the developing countries of the South are subject to debate. What will be the impact of these technologies on productivity in developing countries? Will farmers in the South adopt these technologies? This chapter addresses these questions through both theoretical analysis and review of empirical evidence.

The first part of the chapter provides a conceptual framework for analyzing adoption and diffusion patterns of agricultural biotechnology. The next section presents the findings of our model analyzing profitability of pest controlling biotechnologies, which are the technologies that have been introduced thus far. Details of the model are provided in the Appendix to this chapter. There is growing evidence on adoption and impact of agricultural biotechnology both in developed and developing countries. Thus the conceptual section is followed by a discussion of some of the empirical findings on adoption of biotechnology for both developed and developing countries. The last section synthesizes our results and provides policy conclusions.

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