Table 87: Econometric Model. Dependent Variable
GMO
|
Soy |
3.992 *** |
|
Emp |
0.943 (0.06836) |
|
Farmer |
0.734 |
|
Soc |
0.643 |
|
Corp |
-0.180 *** ___________________(0.06465) |
Number of obs = 1377
Wald chi2(5) = 452.19
Prob > chi2 = 0.0000
Log pseudolikelihood = -238.9142
Pseudo R2 = 0.7378
Conclusion
Today, the effects of property rights definition and enforcement on biotechnology in agricultural
markets is one of the main issues under debate. Scholars and policymakers debate the pros and cons of
different regimes. According to existing literature, the effective protection of property rights offers
adequate incentives for R&D in a biotechnology market controlled by private firms. This kind of protection
was not needed decades ago, when most of the research was in the hands of governmental or non-profit
institutions. However, in the last few decades, the growth of private research and the consolidation of the
private sector in multinational corporations have brought the issue of property rights to the international
arena. This article uses the case study of Argentina to understand the complexity of property rights
definitions in developing countries. It uses econometric techniques to evaluate the effect of using
genetically modified seeds in soybeans and the decision making of farmers. This paper finds that, even
though the gains from using genetically modified soybean are apparent, corporation farms will not be as
willing to use them as individual farms and informal societies. This result can be a direct consequence of
the uncertain definition of property rights in the market for seeds, and the higher exposure of corporations
to this kind of regulation.
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