Matin Qaim
Center for Development Research (ZEF), University of Bonn
Eugenio J. Cap
Instituto de Economía y Sociología, Instituto Nacional de Tecnología Agropecuaria (INTA), Buenos Aires
Alain de Janvry
Department of Agricultural and Resource Economics, University of California, Berkeley

Transgenic Bt cotton can halve pesticide application rates in Argentina while significantly increasing yields. Yield effects are bigger than in other countries, due to the current low levels of insecticide use. Although smallholder farmers are not currently using the technology, gross benefits are predicted to be highest for them. Biological model simulations show that rapid resis- tance buildup in pest populations appears to be unlikely if mini- mum non-Bt refuge areas are maintained.

Key words: Bt cotton, damage control, pesticides, pest resis- tance, yield effect.