Agricultural innovation in low-income tropical countries contributes to a more effective and sustainable use of natural resources and reduces hunger and poverty through economic development in rural areas. Yet, despite numerous recent public and private initiatives to develop capacities for agricultural innovation, such initiatives are often not well aligned with national efforts to revive existing Agricultural Innovation Systems (AIS).
Although the benefits of genetically modified (GM) crops have been well documented, how do farmers manage the risk of new technology in the early stages of technology adoption has received less attention. We compare the total factor productivity (TFP) of cotton to other major crops (wheat, rice, and corn) in China between 1990 and 2015, showing that the TFP growth of cotton production is significantly different from all other crops. In particular, the TFP of cotton production increased rapidly in the early 1990s then declined slightly around 2000 and rose again.