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Welfare Effects of Agricultural Technology adoption: the case of improved groundnut varieties in rural Malawi

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  • Simtowe, Franklin
  • Kassie, Menale
  • Asfaw, Solomon
  • Shiferaw, Bekele A.
  • Monyo, Emmanuel
  • Siambi, Moses

Abstract

This paper applies a program evaluation technique to assess the causal effect of the adoption of improved groundnut technologies on consumption expenditure and poverty measured by headcount, poverty gap and poverty severity indices. The paper is based on a cross-sectional farm household level data collected in 2008 from a sample of 594 households in rural Malawi. A sensitivity analysis is conducted to test the robustness of the propensity score based results using the rbounds test and the mean absolute standardized bias (MASB) between adopters and non-adopters. The analysis reveals robust and positive and significant impacts of improved groundnut variety adoption on per capita consumption expenditure and on poverty reduction. The findings generally provide justification for continued public and private investment in groundnut research and outreach in Malawi.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126761.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126761

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Keywords: groundnuts technology; propensity score matching; poverty; Malawi; Research and Development/Tech Change/Emerging Technologies; C13; C15; O32; O38;

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  1. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
  2. Becerril, Javier & Abdulai, Awudu, 2010. "The Impact of Improved Maize Varieties on Poverty in Mexico: A Propensity Score-Matching Approach," World Development, Elsevier, vol. 38(7), pages 1024-1035, July.
  3. 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.
  4. Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," IZA Discussion Papers 2149, Institute for the Study of Labor (IZA).
  5. Paul Mosley & Sanzidur Rahman, 1999. "Impact of technological change on income distribution and poverty in Bangladesh agriculture: an empirical analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 935-955.
  6. 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.
  7. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
  8. Yoko Kijima & Keijiro Otsuka & Dick Sserunkuuma, 2008. "Assessing the impact of NERICA on income and poverty in central and western Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 327-337, 05.
  9. Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192.
  10. Mahabub HOSSAIN & Manik L. BOSE & Bazlul A. A. MUSTAFI, 2006. "Adoption And Productivity Impact Of Modern Rice Varieties In Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 44(2), pages 149-166.
  11. Otsuka, Keijiro, 2000. "Role of agricultural research in poverty reduction: lessons from the Asian experience," Food Policy, Elsevier, vol. 25(4), pages 447-462, August.
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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.

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