This article explores the dynamics of smallholder technology adoption, with particular reference to a high-yielding, low external input rice production method in Madagascar. We present a simple model of technology adoption by farm households in an environment of incomplete financial and land markets. We then use a probit model and symmetrically censored least squares estimation of a dynamic tobit model to analyze the decisions to adopt, expand, and disadopt the method. We find that seasonal liquidity constraints discourage adoption by poorer farmers. Learning effects-both from extension agents and from other farmers-exert significant influence over adoption decisions. Copyright 2006 International Association of Agricultural Economists.
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.
Volume (Year): 35 (2006) Issue (Month): 3 (November) Pages: 373-388 Download reference. The following formats are available: HTML
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