IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v74y2023i2p510-533.html
   My bibliography  Save this article

The role of social networks in the adoption of competing new technologies in Ghana

Author

Listed:
  • Yazeed Abdul Mumin
  • Awudu Abdulai
  • Renan Goetz

Abstract

We use a detailed dataset to examine the impact of social networks, conditional on contextual and individual confounders, on farmers' adoption of competing improved soybean varieties in Ghana. Based on the contagion conceptual framework, we employ a spatial autoregressive multinomial probit model to examine how neighbours' varietal and cross‐varietal adoption of improved varieties affect a farmer's adoption decision in the social network. Our results show that adoption decisions in a network tend to converge on one variety, such that beyond a threshold of adopting neighbours of that improved variety, the cross‐varietal effects tend to lose significance in the network. If the shares of adopting neighbours of the improved varieties are equal, we find evidence that farmers are not more likely to adopt either improved variety compared to farmers with no neighbours who have adopted the improved varieties. The findings demonstrate the significance of neighbourhood effects in the adoption of competing technologies.

Suggested Citation

  • Yazeed Abdul Mumin & Awudu Abdulai & Renan Goetz, 2023. "The role of social networks in the adoption of competing new technologies in Ghana," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 510-533, June.
    • Handle: RePEc:bla:jageco:v:74:y:2023:i:2:p:510-533
    DOI: 10.1111/1477-9552.12517
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-9552.12517
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-9552.12517?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. repec:dau:papers:123456789/10840 is not listed on IDEAS
    3. Patrick S. Ward & Valerien O. Pede, 2015. "Capturing social network effects in technology adoption: the spatial diffusion of hybrid rice in Bangladesh," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 225-241, April.
    4. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    5. Raja Chakir & Olivier Parent, 2009. "Determinants of land use changes: A spatial multinomial probit approach," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 327-344, June.
    6. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    7. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
    8. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, September.
    9. Hailemariam Teklewold & Menale Kassie & Bekele Shiferaw, 2013. "Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 597-623, September.
    10. Giacomo De Giorgi & Anders Frederiksen & Luigi Pistaferri, 2020. "Consumption Network Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 130-163.
    11. Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192, February.
    12. Xiaodong Liu & Eleonora Patacchini & Edoardo Rainone, 2017. "Peer effects in bedtime decisions among adolescents: a social network model with sampled data," Econometrics Journal, Royal Economic Society, vol. 20(3), pages 103-125, October.
    13. Gazali Issahaku & Awudu Abdulai, 2020. "Adoption of climate‐smart practices and its impact on farm performance and risk exposure among smallholder farmers in Ghana," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 396-420, April.
    14. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    15. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1239-1267.
    16. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    17. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    18. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    19. Onjaherilanto Razanakoto & Rolland Razafindraibe & Andry Andriamananjara & Marie-Paule Razafimanantsoa & Tovohery Rakotoson & Erik Smolders & Lilia Rabeharisoa, 2018. "Failures in agricultural innovation due to poor understanding of farmers’ predispositions," Development in Practice, Taylor & Francis Journals, vol. 28(5), pages 691-704, July.
    20. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    21. Yiyi Wang & Kara Kockelman & Paul Damien, 2014. "A spatial autoregressive multinomial probit model for anticipating land-use change in Austin, Texas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 251-278, January.
    22. Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, vol. 83(2), pages 326-350, July.
    23. Marcel Fafchamps & Flore Gubert, 2007. "Risk Sharing and Network Formation," American Economic Review, American Economic Association, vol. 97(2), pages 75-79, May.
    24. Paul Niehaus, 2011. "Filtered Social Learning," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 686-720.
    25. Jeffrey H. Dorfman, 1996. "Modeling Multiple Adoption Decisions in a Joint Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 547-557.
    26. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    27. Lee, Lung-fei, 2007. "Identification and estimation of econometric models with group interactions, contextual factors and fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 333-374, October.
    28. Kornish, Laura J., 2006. "Technology choice and timing with positive network effects," European Journal of Operational Research, Elsevier, vol. 173(1), pages 268-282, August.
    29. repec:dau:papers:123456789/4392 is not listed on IDEAS
    30. Yazeed Abdul Mumin & Awudu Abdulai, 2022. "Social networks, adoption of improved variety and household welfare: evidence from Ghana," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 1-32.
    31. Xu Lin, 2010. "Identifying Peer Effects in Student Academic Achievement by Spatial Autoregressive Models with Group Unobservables," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 825-860, October.
    32. Lung-fei Lee & Xiaodong Liu & Xu Lin, 2010. "Specification and estimation of social interaction models with network structures," Econometrics Journal, Royal Economic Society, vol. 13(2), pages 145-176, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yanbing Wang & Niklas Möhring & Robert Finger, 2023. "When my neighbors matter: Spillover effects in the adoption of large‐scale pesticide‐free wheat production," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 256-273, March.
    2. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    3. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2020. "Peer Effects in Networks: A Survey," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 603-629, August.
    4. D’Exelle, Ben & Verschoor, Arjan, 2023. "Village networks and entrepreneurial farming in Uganda," World Development, Elsevier, vol. 167(C).
    5. Lim, Krisha & Wichmann, Bruno & Luckert, Martin, 2021. "Adaptation, spatial effects, and targeting: Evidence from Africa and Asia," World Development, Elsevier, vol. 139(C).
    6. Boucher, Vincent & Fortin, Bernard, 2015. "Some Challenges in the Empirics of the Effects of Networks," IZA Discussion Papers 8896, Institute of Labor Economics (IZA).
    7. Yazeed Abdul Mumin & Awudu Abdulai, 2022. "Social networks, adoption of improved variety and household welfare: evidence from Ghana," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 1-32.
    8. Patacchini, Eleonora & Hsieh, Chih-Sheng & Lin, Xu, 2019. "Social Interaction Methods," CEPR Discussion Papers 14141, C.E.P.R. Discussion Papers.
    9. Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves & Lee, Lung-Fei, 2011. "Criminal Networks: Who is the Key Player?," Research Papers in Economics 2011:7, Stockholm University, Department of Economics.
    10. Yann Algan & Quoc-Anh Do & Nicolò Dalvit & Alexis Le Chapelain & Yves Zenou, 2015. "How Social Networks Shape Our Beliefs: A Natural Experiment among Future French Politicians," Working Papers hal-03459820, HAL.
    11. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 115-168, Elsevier.
    12. Chih‐Sheng Hsieh & Lung‐Fei Lee & Vincent Boucher, 2020. "Specification and estimation of network formation and network interaction models with the exponential probability distribution," Quantitative Economics, Econometric Society, vol. 11(4), pages 1349-1390, November.
    13. repec:hal:spmain:info:hdl:2441/78vacv4udu92eq3fec89svm9uv is not listed on IDEAS
    14. Tessema, Yohannis Mulu & Asafu-Adjaye, John & Kassie, Menale & Mallawaarachchi, Thilak, 2016. "Do neighbours matter in technology adoption? The case of conservation tillage in northwest Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(3).
    15. Alex Centeno, 2022. "A Structural Model for Detecting Communities in Networks," Papers 2209.08380, arXiv.org, revised Oct 2022.
    16. Margherita Comola & Carla Inguaggiato & Mariapia Mendola, 2021. "Learning about Farming: Innovation and Social Networks in a Resettled Community in Brazil," Development Working Papers 468, Centro Studi Luca d'Agliano, University of Milano.
    17. Yingyao Hu & Zhongjian Lin, 2018. "Misclassification and the hidden silent rivalry," CeMMAP working papers CWP12/18, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    18. Roman Horvath, 2020. "Peer Effects in Central Banking," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(4), pages 764-814, December.
    19. Tisorn Songsermsawas & Kathy Baylis & Ashwini Chhatre & Hope Michelson, 2014. "Can Peers Improve Agricultural Productivity?," CESifo Working Paper Series 4958, CESifo.
    20. Yann Algan & Quoc-Anh Do & Nicolò Dalvit & Alexis Le Chapelain & Yves Zenou, 2015. "How Social Networks Shape Our Beliefs: A Natural Experiment among Future French Politicians," Working Papers hal-03459820, HAL.
    21. Chung, Bobby W., 2020. "Peers’ parents and educational attainment: The exposure effect," Labour Economics, Elsevier, vol. 64(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:74:y:2023:i:2:p:510-533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.