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Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia

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  • Asfaw, Solomon
  • Shiferaw, Bekele
  • Simtowe, Franklin
  • Lipper, Leslie

Abstract

This paper evaluates the potential impact of adoption of improved legume technologies on rural household welfare measured by consumption expenditure in rural Ethiopia and Tanzania. The study utilizes cross-sectional farm household level data collected in 2008 from a randomly selected sample of 1313 households (700 in Ethiopia and 613 in Tanzania). The causal impact of technology adoption is estimated by utilizing endogenous switching regression. This helps us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Our analysis reveals that adoption of improved agricultural technologies has a significant positive impact consumption expenditure (in per adult equivalent terms) in rural Ethiopia and Tanzania. This confirms the potential role of technology adoption in improving rural household welfare as higher consumption expenditure from improved technologies translate into lower poverty, higher food security and greater ability to withstand risk. An analysis of the determinants of adoption highlighted inadequate local supply of seed, access to information and perception about the new cultivars as key constraints for technology adoption.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 37 (2012)
Issue (Month): 3 ()
Pages: 283-295

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Handle: RePEc:eee:jfpoli:v:37:y:2012:i:3:p:283-295

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Household welfare; Technology adoption; Impact assessment; Endogenous switching; Sub-Saharan Africa; Ethiopia; Tanzania;

References

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Citations

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Cited by:
  1. Muhammad Khan & Muhammad Khan & Khalid Zaman & Muhammad Khan, 2014. "The evolving role of agricultural technology indicators and economic growth in rural poverty: has the ideas machine broken down?," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2007-2022, July.
  2. Gitonga, Zachary M. & De Groote, Hugo & Kassie, Menale & Tefera, Tadele, 2013. "Impact of metal silos on households’ maize storage, storage losses and food security: An application of a propensity score matching," Food Policy, Elsevier, vol. 43(C), pages 44-55.
  3. Negash, Martha, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126793, International Association of Agricultural Economists.
  4. Pannell, David J & Llewellyn, Rick S & Corbeels, Marc, 2013. "The farm-level economics of conservation agriculture for resource-poor farmers," Working Papers 166526, University of Western Australia, School of Agricultural and Resource Economics.

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