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Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects

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Author Info
Mariapia Mendola (University of Milan-Bicocca, Italy)
Abstract

Agricultural technology opens great opportunities of increasing food grain production in land scarce countries. But questions are raised about the potential adverse or favourable impact of new technology on economic conditions of the poor. This study is aimed at contributing to the debate about the relative importance of ‘direct’ and ‘indirect effects’ of agricultural technology adoption within poverty alleviation strategies. It does so through an empirical investigation of the relationship between technological change, of the Green Revolution type, and wellbeing of smallholder farm households in two rural Bangladeshi regions. The paper assesses the “causal effect” of technological change on farm-households’ income through parametric and nonparametric estimates. In particular, it pursues a targeted evaluation of whether adopting new technology causes poor-resource farmers to improve their income through the ‘matching analysis’. It finds a robust and positive effect of agricultural technology adoption on farm households’ wellbeing suggesting that there is a large scope for enhancing the role of agricultural technology in directly contributing to poverty alleviation.

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Publisher Info
Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 179.

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Date of creation: 01 Nov 2003
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Handle: RePEc:csl:devewp:179

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Related research
Keywords: Farm household behaviour; Technology adoption; Poverty alleviation; Propensity score matching;

Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

References listed on IDEAS
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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Carletto, Calogero & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Sustainability in the Diffusion of Innovations: Smallholder Nontraditional Agro-Exports in Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 345-69, January.
  3. Sanders, John H. & Lynam, John K., 1981. "New agricultural technology and smallfarmers in Latin America," Food Policy, Elsevier, vol. 6(1), pages 11-18, February. [Downloadable!] (restricted)
  4. Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies.. [Downloadable!]
    Other versions:
  5. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November. [Downloadable!]
  6. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier. [Downloadable!] (restricted)
    Other versions:
  7. Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December. [Downloadable!] (restricted)
  8. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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