This article employs a propensity s

This article employs a propensity score-matching approach to examine the
direct effects of adoption of Bacillus thuringiensis (Bt) cotton on yields, pesticide
demand, household income and poverty, using cross-sectional data from a
survey of farmers in the Punjab province of Pakistan. Generally, the findings
reveal that adoption of the new technology exerts a positive and significant
impact on cotton yields, household income and poverty reduction, and a negative
effect on the use of pesticides. The positive and significant impact of the technology
on yields and household income is consistent with the potential role of
new agricultural technology in directly reducing rural poverty through increased
farm household income.