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The Effect of Social Capital on Fertiliser Adoption: Evidence from Rural Tanzania

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  • Jonathan Isham

Abstract

Do the characteristics of local social structures affect fertiliser adoption among rural households? This paper extends the model of technology adoption of Feder and Slade (1984) to incorporate social capital, and then tests the model with household data from two agro-ecological zones in rural Tanzania. Probit estimates of the model show that the probability of adoption of improved fertiliser in 1994-5 in the Central Plateau region is increasing in land under cultivation, cumulative adoption patterns, ethnically based social affiliations, the adoption of improved seeds, the availability of credit and extension services and the average years of residence in the village. In the Plains region, this probability is increasing in land under cultivation, ethnically based social affiliations and consultative norms. Overall, these results, which are robust after testing for the likely reverse causality of land under cultivation, support the finding that ethnically based and participatory social affiliations act as forms of social capital in the adoption decision. Copyright 2002, Oxford University Press.

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Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 11 (2002)
Issue (Month): 1 (March)
Pages: 39-60

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Handle: RePEc:oup:jafrec:v:11:y:2002:i:1:p:39-60

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  1. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
  2. Kaliba, Aloyce R. & Verkuijl, Hugo & Mwangi, Wilfred, 2000. "Factors Affecting Adoption Of Improved Maize Seeds And Use Of Inorganic Fertilizer For Maize Production In The Intermediate And Lowland Zones Of Tanzania," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), April.
  3. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
  4. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-97, July.
  5. Pomp, Marc & Burger, Kees, 1995. "Innovation and imitation: Adoption of cocoa by Indonesian smallholders," World Development, Elsevier, vol. 23(3), pages 423-431, March.
  6. Grootaert, Christiaan, 1999. "Social capital, houshold welfare, and poverty in Indonesia," Policy Research Working Paper Series 2148, The World Bank.
  7. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  8. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  9. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
  10. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 1-12.
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