Files
Abstract
This article examines the impact of Bt corn adoption in the Philippines using an econometric
approach that addresses simultaneity, selection, and censoring problems. Although previous
literature emphasizes the importance of simultaneity and selection problems, this is the first
study that addresses the issue of censoring in estimating the effects of Bt corn adoption at the
farm in a developing country context. We show that Bt corn adoption provides modest but
statistically significant increases in farm yields and profits. Furthermore, our results provide
some evidence of inference errors that can potentially arise when censoring in the pesticide
application variable is ignored in the estimation procedures.