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Abstract
This study aims to analyze the economic impacts of the adoption of Bt11
corn in Brazil, as well as the consequences of the prohibition of the cultivation only in
the Paraná state, if the state law number 14.162/03 would start to be active. For this
purpose, an inter-regional general equilibrium computable model is used, gauged for 2001, simulating the reduction of insecticide, labor force, fuel and lubricants, as well
as the increase in the yield observed in crops which use Bt11 corn. When the adoption
of Bt11 corn in “technified” Brazilian regions is analyzed, the stock of capital and labor
force moves from all regions to the South of the country. Taking into account that only
Paraná state does not adopt the Bt11 corn, it is observed that both the labor force and the
stock of capital move from the South and the Southeast to the Central-Western region
of Brazil. The most expressive result takes place in the Paraná State, where not only
the corn sector, but also downstream sectors lose competitiveness, reducing the level of
activity, employment and household consumption. In general terms, the effects of the
adoption of the Bt11 corn are transferred along its supply chain, increasing GDP, exports
and household consumption. Results are more expressive in sectors and regions directly
related to the corn supply chain, such as animal raising and meat, mostly located in the
South of the country.