Macroeconomic Factors Affecting the Diffusion of Genetically Modified Crops Technology

Genetic modified crop technology is one of the world subject today especially because of food security. The Food and Agricultural Organization (FAO) has food security as one of the most pressing problem found in the world due to the unexpected increase in the world population. Therefore discoveries were made on how to improve on the food security of the world and reduce hunger in the world. One of the solutions was first of all the green revolution which began in India .This revolution helped to improve on the food supply in India and reduced hunger in India as well. Following this revolution was now the genetic modified crop technology which helped to fight against pest and some insects which could destroy some crops. Also some genetic modified cops could grow in some desert areas like in Sub Sahara areas were because of the dryness and harsh weather some crops couldn’t adapt. Due to the advantages discovered from using the genetic modified crop technology, many countries there decided to adopt this technology. The question is therefore why the spread of this technology faster in some countries than other counties? The study tries to develop and test a model which tries to explain the uneven diffusion of genetic modified crop technology across countries. We used mostly macroeconomic factors as our independent variables such as openness to trade, credit availability, GDP per capita, government size, growth rate and inflation. Genetic modified crop land size is our dependent variable. Also we used 10 countries and nine years (2004 -2012) with the help of panel data in our regression. However, the results shows some macroeconomics factors such as credit availability, government size, growth rate were significant in explaining the uneven diffusion of genetically modified crop technology. Keywords: Genetic modified crop technology, Government size, credit availability, openness to trade ,growth rate ,inflation , GDP per capita ,Food security.