Consumeras Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach

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Amrita Chatterjee
Amrita Chatterjee
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Arpita Ghose
Arpita Ghose

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This paper develops a three-sector theoretical growth model to capture the role of consumers’ acceptance towards the second generation of genetically modified (GM) crops in the long run growth process of the economy. An Acceptance (towards GM crop) parameter is defined as a ratio of consumption of GM to traditional variety of food, whose growth rate is determined by growth rate of human capital. Dynamic stability of the system is ensured provided the value of acceptance parameter is within a certain range. A range of the acceptance parameter is also obtained which ensures not only the dynamic stability of the system but also ensures higher rate of growth of an economy that produces both GM and non-GM crops compared to an economy that does not produce GM crops. The empirical validation of the model through panel data analysis suggests that research and development activity in agriculture is key to the growth process of the economy as it helps to form acceptance towards new technology among consumers.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Amrita Chatterjee. 2017. \u201cConsumeras Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 17 (GJHSS Volume 17 Issue E1): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: JEL Code: O41, Q16, C61, C62
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v1.2

Issue date

April 6, 2017

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English

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This paper develops a three-sector theoretical growth model to capture the role of consumers’ acceptance towards the second generation of genetically modified (GM) crops in the long run growth process of the economy. An Acceptance (towards GM crop) parameter is defined as a ratio of consumption of GM to traditional variety of food, whose growth rate is determined by growth rate of human capital. Dynamic stability of the system is ensured provided the value of acceptance parameter is within a certain range. A range of the acceptance parameter is also obtained which ensures not only the dynamic stability of the system but also ensures higher rate of growth of an economy that produces both GM and non-GM crops compared to an economy that does not produce GM crops. The empirical validation of the model through panel data analysis suggests that research and development activity in agriculture is key to the growth process of the economy as it helps to form acceptance towards new technology among consumers.

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Consumeras Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach

Amrita Chatterjee
Amrita Chatterjee
Arpita Ghose
Arpita Ghose

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