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The Adoption of Water Conservation and Intensification Technologies and Farm Income: A Propensity Score Analysis for Rice Farmers in Northern Ghana

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Author Info
Faltermeier, Liane
Abdulai, Awudu
Abstract

This study uses cross-sectional data of 342 small-scale lowland rice farmers in Northern Region of Ghana to analyze the impact of the adoption decision of bund construction and seed dibbling on net returns, input demand and output supply. Matching was conducted based on Mahalanobis distance combined with propensity score. Balancing tests by checking the mean standardized absolute bias in the matched sample were conducted as well as sensitivity analysis to check for hidden bias due to unobservable selection. The empirical results of impact assessment using propensity score matching controlling for self-selection bias suggest that input demand is significantly higher for adopters of bunds, but not statistically different for adopters and non-adopters of dibbling seed. However, output supply and net returns were not found to be statistically different for adopters and non-adopters of bunds. Adopters of dibbling were found to have higher output supply while no statistically significant difference was found for net returns of adopters and non-adopters of dibbling. The results were found to be relative insensitive to hidden bias.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6354.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6354

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Related research
Keywords: Propensity score matching; evaluation; sensitivity analysis; Rosenbaum bounds; water conservation methods; bunds; rice production; Crop Production/Industries; Farm Management;

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  1. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2004. "New evidence on the effects of job creation schemes in Germany--a matching approach with threefold heterogeneity," Research in Economics, Elsevier, vol. 58(4), pages 257-302, December. [Downloadable!] (restricted)
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  2. Abdulai, Awudu & Binder, Claudia R., 2006. "Slash-and-burn cultivation practice and agricultural input demand and output supply," Environment and Development Economics, Cambridge University Press, vol. 11(02), pages 201-220, April. [Downloadable!]
  3. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June. [Downloadable!] (restricted)
  4. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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