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Agricultural Technology Adoption and Rural Poverty: Application of an Endogenous Switching Regression for Selected East African Countries

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  • Asfaw, Solomon
  • Shiferaw, Bekele A.

Abstract

Achieving agricultural growth and development and thereby improving rural household welfare will require increased efforts to provide yield enhancing and natural resources conserving technologies. Agricultural research and technological improvements are therefore crucial to increase agricultural productivity and thereby reduce poverty. However evaluation of the impact of these technologies on rural household welfare have been very limited by lack of appropriate methods and most of previous research has therefore failed to move beyond estimating economic surplus and return to research investment. This paper evaluates the potential impact of adoption of modern agricultural technologies on rural household welfare measured by crop income and consumption expenditure in rural Ethiopia and Tanzania. The study utilizes cross-sectional farm household level data collected in 2007 from a randomly selected sample of 1313 households (700 in Ethiopia and 613 in Tanzania). We estimate the casual impact of technology adoption by utilizing endogenous switching regression and propensity score matching methods to assess results robustness. 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 on crop income although the impact on consumption expenditure is mixed. This confirms the potential direct role of technology adoption on improving rural household welfare, as higher incomes from improved technology translate into lower income poverty.

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  • Asfaw, Solomon & Shiferaw, Bekele A., 2010. "Agricultural Technology Adoption and Rural Poverty: Application of an Endogenous Switching Regression for Selected East African Countries," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97049, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:97049
    DOI: 10.22004/ag.econ.97049
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    Cited by:

    1. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    2. El-Shater, Tamer & Yigezu, Yigezu A. & Mugera, Amin & Piggin, Colin & Haddad, Atef & Khalil, Yaseen & Loss, Stephen & Aw-Hassan, Aden, 2015. "Livelihoods Effects of Zero Tillage among Small and Medium Holder Farmers in the Developing World," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204303, Agricultural Economics Society.
    3. Musa H. Ahmed & Hiwot M. Mesfin & Seltene Abady & Wendmagegn Mesfin & Amare Kebede, 2016. "Adoption of improved groundnut seed and its impact on rural households’ welfare in Eastern Ethiopia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1268747-126, December.
    4. Lema, Tadesse Zenebe & Tessema, Solomon Amare & Abebe, Fentahun Addis, 2016. "Analysis of technical efficiency of rice production in fogera district of Ethiopia: A stochastic frontier approach," MPRA Paper 77774, University Library of Munich, Germany, revised 2017.
    5. Fissha Asmare & Jūratė Jaraitė & Andrius Kažukauskas, 2022. "Climate change adaptation and productive efficiency of subsistence farming: A bias‐corrected panel data stochastic frontier approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 739-760, September.
    6. Deißler, Luzia Karin & Krause, Henning & Grote, Ulrike, 2021. "Gender Dynamics and Food Security in the Kenyan African Indigenous Vegetables Supply Chain," 2021 Conference, August 17-31, 2021, Virtual 314983, International Association of Agricultural Economists.
    7. Ngulube, James, 2017. "An economic evaluation of the Cotton Yield Programme in Zambia," Research Theses 276440, Collaborative Masters Program in Agricultural and Applied Economics.
    8. Victoria I. Audu & Goodness C. Aye, 2014. "The effects of improved maize technology on household welfare in Buruku, Benue State, Nigeria," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-10, December.
    9. Hailu, Getu & Weersink, Alfons & Minten, Bart, 2018. "Farming practices and productivity," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 9, pages 205-235, International Food Policy Research Institute (IFPRI).
    10. Wanjira, John K. & Mburu, John I. & Nzuve, Felister M. & Makokha, Stella & Emongor, Rosemary A. & Taracha, Catheline, 2022. "Impact of climate-smart maize varieties on household income among smallholder farmers in Kenya: The case of Embu County," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3), September.
    11. The Dung Bui & Dung Mau Nguyen, 2022. "Sustainable land managements in Vietnam: adoption determinants and income effects at farm household level," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9687-9703, July.
    12. Başak Dalgıç & Burcu Fazlıoğlu & Aytekin Güven, 2023. "Innovation, employment and market structure: firm level evidence from Turkey," Empirical Economics, Springer, vol. 65(3), pages 1385-1407, September.
    13. Tadie Mirie Abate & Abebe Birara Dessie & Taye Melese Mekie, 2019. "Technical efficiency of smallholder farmers in red pepper production in North Gondar zone Amhara regional state, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    14. Mekonnen, Tigist, 2017. "Productivity and household welfare impact of technology adoption: Micro-level evidence from rural Ethiopia," MERIT Working Papers 2017-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Phiri, Isaac, 2020. "The effect of access to finance on commercialisation of smallholder maize farmers in Eswatini," Research Theses 334755, Collaborative Masters Program in Agricultural and Applied Economics.
    16. Nhantumbo, Nascimento S. & Zivale, Clemente O. & Nhantumbo, Ivete S. & Gomes, Ana M., 2016. "Making agricultural intervention attractive to farmers in Africa through inclusive innovation systems," World Development Perspectives, Elsevier, vol. 4(C), pages 19-23.

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    Food Security and Poverty; Research and Development/Tech Change/Emerging Technologies;

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