Why agricultural technological transfers to developing countries should be deregulated

This paper analyzes the institutional arrangements governing the international transfer of input-embodied new technologies in agriculture. While developed countries characteristically allow "multiple channel" private and public technological transfer, developing countries often force technology transfer through a "single channel" controlled by government agencies, with an emphasis on official performance tests. On the basis of case studies, it is shown that allowing private technology transfer and refocusing input regulations on externalities can lead to significant productivity and income gains in developing countries.