biostudies-literatureUnknown109(29)Kathage JDespite widespread adoption of genetically modified crops in many countries, heated controversies about their advantages and disadvantages continue. Especially for developing countries, there are concerns that genetically modified crops fail to benefit smallholder farmers and contribute to social and economic hardship. Many economic studies contradict this view, but most of them look at short-term impacts only, so that uncertainty about longer-term effects prevails. We address this shortcoming by analyzing economic impacts and impact dynamics of Bt cotton in India. Building on unique panel data collected between 2002 and 2008, and controlling for nonrandom selection bias in technology adoption, we show that Bt has caused a 24% increase in cotton yield per acre through reduced pest damage aProceedings of the National Academy of Sciences of the United States of America11652-6https://www.ebi.ac.uk/biostudies/studies/S-EPMC3406847biostudies-literatureEconomic impacts and impact dynamics of Bt (Bacillus thuringiensis) cotton in India.PMC3406847Qaim MKathage JfalseEconomic impacts and impact dynamics of Bt (Bacillus thuringiensis) cotton in India.Despite widespread adoption of genetically modified crops in many countries, heated controversies about their advantages and disadvantages continue. Especially for developing countries, there are concerns that genetically modified crops fail to benefit smallholder farmers and contribute to social and economic hardship. Many economic studies contradict this view, but most of them look at short-term impacts only, so that uncertainty about longer-term effects prevails. We address this shortcoming by analyzing economic impacts and impact dynamics of Bt cotton in India. Building on unique panel data collected between 2002 and 2008, and controlling for nonrandom selection bias in technology adoption, we show that Bt has caused a 24% increase in cotton yield per acre through reduced pest damage a2012-01-01T00:00:00Z2012 Jul2025-04-19T02:53:26.103Z2019-03-27T00:56:03ZS-EPMC34068472275349310.1073/pnas.1203647109