Effects of genetically modified products market on manufacturers and consumers: theoretical approach
In the article, based on the theoretical and applied works investigating the effects of the genetically modified products’ market, its positive and negative effects on manufacturers and consumers are analyzed and evaluated, by applying the partial equilibrium model. The identifica-tion of development goals and application areas of genetically modified organisms (GMO) and products (GMP) helped to determine agriculture as the area of their highest prevalence. The po-larization of the scientific opinion regarding GMO and GMP indicates the controversy related to this issue.
It has been established that the biotechnological effect can be evaluated on micro and macro levels. In micro level, such an effect on economy is evaluated according to the changes of total factor productivity, due to this, it is considered economically beneficial. While evaluating the economic effects of the application of the said technology on a macro level, the cost-benefit economic model is most often used. The research has revealed that, compared to traditional products, the entry of GMP to the market presents economic benefit to the society. However, the benefit is decreased by the protection of innovations with intellectual property rights. Nevertheless, the scientists draw attention to the fact that the evaluation of the cost/benefit and distribution of GMP must be oriented towards consumer behavior, because the economic results of agricultural subjects depend on consumption, social values and ethics. Scientific researches show that the society values GMP differently and perceives them controversially. Nonetheless, consumers of the EU, Lithuania included, values these products skeptically, due to the concern about the safety of GM food and its effect on health.
JEL Codes: D610, Q110, Q120, Q160.
Article in: English
Published on-line: 2011-03-21
Keyword(s): genetically modified products, market effects, public good.
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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