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Determinants of Agricultural Technology adoption: the case of improved groundnut varieties in Malawi

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  • Simtowe, Franklin
  • Asfaw, Solomon
  • Diagne, Aliou
  • Shiferaw, Bekele A.

Abstract

This paper applies the Average Treatment Effect (ATE) framework on data obtained from a random cross-section sample of 594 farmers in Malawi to document the actual and potential adoption rates of improved groundnut varieties and their determinants conditional on farmers’ awareness of the technology. The fact that not all farmers are exposed to the new technologies makes it difficult to obtain consistent estimates of population adoption rates and their determinants using direct sample estimates and classical adoption models such as probit or tobit. Our approach tries to control for exposure and selection bias in assessing the adoption rate of technology and its determinants. Results indicate that only 26% of the sampled farmers grew at least one of the improved groundnut varieties. The potential adoption rate of improved groundnut for the population is estimated at 37% and the adoption gap resulting from the incomplete exposure of the population to the improved groundnut is 12%. We further find that the awareness of improved varieties is mainly influenced by information access variables, while adoption is largely influenced by economic constraints. The findings are indicative of the relatively large unmet demand for improved groundnut varieties suggesting that there is scope for increasing the adoption rate of improved groundnut varieties in Malawi once the farmers are made aware of the technologies and if other constraints such as lack of access to credit are addressed.

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Bibliographic Info

Paper provided by African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA) in its series 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa with number 95921.

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Date of creation: Sep 2010
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Handle: RePEc:ags:aaae10:95921

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Related research

Keywords: groundnuts; adoption; Average Treatment Effect; Malawi; Crop Production/Industries;

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References

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  1. Diop, Ndiame & Beghin, John & Sewadeh, Mirvat, 2004. "Groundnut policies, global trade dynamics, and the impact of trade liberalization," Policy Research Working Paper Series 3226, The World Bank.
  2. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
  3. Allan Shampine, 1998. "Compensating for Information Externalities in Technology Diffusion Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 337-346.
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Cited by:
  1. Tanellari, Eftila & Kostandini, Genti & Bonabana, Jackline, 2013. "Gender Impacts on Adoption of New Technologies: Evidence from Uganda," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143204, Southern Agricultural Economics Association.
  2. Kankwamba, Henry & Mangisoni, Julius H. & Simtowe, Franklin & Mausch, Kai & Siambi, Moses, 2012. "Improved Legume Seed Demand Systems In Central Malawi: What Do Farmers’ Seed Expenditures Say About Their Preferences?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131684, International Association of Agricultural Economists.
  3. Ibrahim, Mohammed & Florkowski, Wojciech J. & Kolavalli, Shashidhara, 2012. "Determinants of Farmer Adoption of Improved Peanut Varieties and their Impact on Farm Income: Evidence from Northern Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125000, Agricultural and Applied Economics Association.

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