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On the joint estimation of multiple adoption decisions: The case of sustainable agricultural technologies and practices in Ethiopia

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  • Hailemariam, Teklewold
  • Kassie, Menale
  • Shiferaw, Bekele A.

Abstract

Sustainable agricultural practices (SAPs) that lead to an increase in productivity are central to the acceleration of economic growth; this will alleviate poverty and help to overcome the recurrent food shortages that affect millions of households in Africa. However, the adoption rates of SAPs remain below expected levels. This paper analyzes the factors that facilitate or impede the probability and level of adoption of interrelated SAPs, using recent data of multiple plot-level observations. Multivariate and ordered probit models are applied to the modeling of adoption decisions by farm households facing multiple SAPs which can be adopted in various combinations. The results show that there is a significant correlation between SAPs, suggesting that adoptions of SAPs are interrelated. The analysis further shows that both the probability and the level of decisions to adopt SAPs are influenced by many factors: a household’s trust in government support, credit constraint, spouse education, rainfall and plot-level disturbances, household wealth, social capital and networks, including the number of traders known by a farmer in his vicinity, his participation in rural institutions, and the number of relatives he has inside and outside his village, labor availability, and plot and market access. These results imply that policy makers and development practitioners whose aims are to strengthen local institutions and service providers, maintain or increase household asset bases, and establish and strengthen social protection schemes, can speed up the adoption of SAPs.

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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126885.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126885

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Keywords: Multiple adoption; Sustainable Agricultural Practices; Multivariate probit; Ordered probit; Ethiopia; International Development; Research and Development/Tech Change/Emerging Technologies; Q01; Q12; Q16; Q18;

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  1. Jonathan Isham, 2002. "The Effect of Social Capital on Fertilizer Adoption: Evidence from Rural Tanzania," Middlebury College Working Paper Series 0225, Middlebury College, Department of Economics.
  2. Marcel Fafchamps & Bart Minten, 2000. "Returns to Social Network Capital among Traders," Development Working Papers 145, Centro Studi Luca d\'Agliano, University of Milano.
  3. Oriana Bandiera & Imran Rasul, 2002. "Social networks and technology adoption in Northern Mozambique," LSE Research Online Documents on Economics 3539, London School of Economics and Political Science, LSE Library.
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  8. Somda, Jacques & Nianogo, A. Joseph & Nassa, Suleymane & Sanou, Seydou, 2002. "Soil fertility management and socio-economic factors in crop-livestock systems in Burkina Faso: a case study of composting technology," Ecological Economics, Elsevier, vol. 43(2-3), pages 175-183, December.
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  11. Kassie, Menale & Zikhali, Precious & Manjur, Kebede & Edwards, Sue, 2008. "Adoption of Organic Farming Technologies: Evidence from Semi-Arid Regions of Ethiopia," Working Papers in Economics 335, University of Gothenburg, Department of Economics.
  12. Menale Kassie & Precious Zikhali & John Pender & Gunnar Köhlin, 2010. "The Economics of Sustainable Land Management Practices in the Ethiopian Highlands," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 605-627.
  13. Neill, Sean P & Lee, David R, 2001. "Explaining the Adoption and Disadoption of Sustainable Agriculture: The Case of Cover Crops in Northern Honduras," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 793-820, July.
  14. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
  15. Lydia Zepeda & Marco Castillo, 1997. "The Role of Husbands and Wives in Farm Technology Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 583-588.
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