An Argument for Deregulating the Transfer of Agricultural Technologies to Developing Countries

Abstract

In the past few decades many developing countries have liberalized trade and investment, removing barriers to imports and allowing the introduction of new foreign technologies. Unfortunately, agriculture often remains outside this reform process. Regulatory obstacles continue to restrain the transfer of technologies through private trade in seeds and other inputs. Industrial countries characteristically allow the transfer of private and public technologies through multiple channels. Developing countries often force technology transfer through a single channel controlled by government agencies, with an emphasis on official performance tests. This article analyzes the institutional arrangements governing the international transfer of new agricultural technologies, examining the cases of agricultural machinery in Bangladesh and seed varieties in Turkey. The analysis shows that allowing the private transfer of technologies and refocusing input regulations on externalities could lead to significant productivity and income gains in developing countries.