The present study is designed to determine the impact of Bt cotton seed on pesticide use and cotton productivity in the Punjab province of Pakistan. Cross-sectional data for two cropping seasons of 2008 and 2009 are gathered from three districts of cotton growing region of the province. Modified exponential damage control production function is employed to estimate the effect of Bt cotton seed. Results of the production function show that farmers using Bt cotton seed obtain higher yield as compared to non-users of Bt cotton seed. Fertilizer and irrigation variables are positively related with cotton yield whereas location dummies indicate that cotton growers from Multan district have low productivity as compared to those from Rahim Yar Khan and Mianwali districts. Age, farming experience and farm size are found increasing cotton productivity. So, the study concludes that in addition to traditional inputs and socioeconomic factors, Bt cotton can fetch higher benefits to cotton growers, provided that farmers have access to quality Bt cotton seed in the market.

Abedullah, S. Kouser and M. Qaim (2015), Bt cotton, pesticide use and environmental efficiency in Pakistan. Journal of Agricultural Economics, Volume 66(1), pp. 66-86. http://dx.doi.org/10.1111/1477-9552.12072

Ali, A. and A. Abdulai (2010), The adoption of genetically modified cotton and poverty reduction in Pakistan. Journal of Agricultural Economics, Volume 61(1), pp. 175-192. http://dx.doi.org/10.1111/j.1477-9552.2009.00227.x

Ashfaq, M., M. Abid, K. Bakhsh and N. Fatima (2012), Analysis of resource use efficiencies and return to scale of medium sized Bt cotton farmers in Punjab, Pakistan. Sarhad Journal of Agriculture, Volume 28(3), pp. 493-498.

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http://www.jstor.org/stable/3700847

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http://dx.doi.org/10.1111/j.1477-9552.2007.00076.x

Government of Pakistan (2010), Pakistan Economic Survey. Islamabad: Ministry of Finance.

Hayee, A. (2005), Cultivation of Bt cotton-Pakistan’s experience. Actionaid-Pakistan, Islamabad. www.actionaid.org/pakistan.

Huang, J., R. Hu, C. Fan, C. E. Pray and S. Rozelle (2002), Bt Cotton benefits, costs and impacts in China. AgBioForum, Volume 5(4), pp. 153-166.

Jha, R. K. and A. P. Regmi (2009), Productivity of pesticide in vegetable farming in Nepal. SANDEE Working Paper # 43-09.

Kathage, J. and M. Qaim (2012), Economic impacts and impact dynamics of Bt (Bacillus thuringiensis) cotton in India. Proceedings of the National Academy of Sciences (PNAS), Volume 109(29), pp. 11652-11656.
http://dx.doi.org/10.1073/pnas.1203647109

Kouser, S. and M. Qaim (2011), Impact of Bt cotton on pesticide poisoning in smallholder agriculture: A panel data analysis. Ecological Economics, Volume 70(11), pp. 2105-2113. http://dx.doi.org/10.1016/j.ecolecon.2011.06.008

Kouser, S. and M. Qaim (2013), Valuing financial, health, and environmental benefits of Bt cotton in Pakistan. Agricultural Economics, Volume 44(3), pp. 323-335. http://dx.doi.org/10.1111/agec.12014

Kouser, S. and M. Qaim (2014), Bt cotton, damage control and optimal levels of pesticide use in Pakistan. Environment and Development Economics, Volume 19(6), pp. 704-723. http://dx.doi.org/10.1017/S1355770X1300051X

Lichtenberg, E. and D. Zilberman (1986), The economics of damage control: why specification matters? American Journal of Agricultural Economics, Volume 68(2), pp. 261-273. http://dx.doi.org/10.2307/1241427

Mulwa, R., D. Wafula, M. Karembu and M. Waithaka (2013), Estimating the potential economic benefits of adopting Bt cotton in selected COMESA countries. AgBioForum, Volume 16(1), pp. 14-26 (2013).

Nazli, H. (2009), Adoption of unapproved varieties of Bt cotton in Pakistan: Impact on production and trade. The Brown Bag Seminar at IFPRI.

Qaim, M., A. Subramanian, G. Naik and D. Zilberman (2006), Adoption of Bt cotton and impact variability: Insights from India. Review of Agricultural Economics, Volume 28(1), pp. 48-58. http://www.jstor.org/stable/3700846

Sheikh, A. D., M. A. Mahmood, A. Hussain, A. Bashir and R. Saeed (2008), Bt-Cotton Situation in Punjab. Technology Transfer Institute, Faisalabad.

Spielman, D. J., H. Nazli, X. Ma, P. Zambrano and F. Zaidi (2015), Technological opportunity, regulatory uncertainty, and Bt cotton in Pakistan. AgBioForum, Volume 18(1), pp. 98-112.

Subramanian, A. and M. Qaim (2010), The impact of Bt cotton on poor households in rural India. The Journal of Development Studies, Volume 46(2), pp. 295-311. http://dx.doi.org/10.1080/00220380903002954