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The Effect of Social Capital on Fertilizer Adoption: Evidence from Rural Tanzania

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Jonathan Isham ()

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Abstract

Do the characterisitics of local social structures affect fertilizer adoption among rural households? This paper extends the model of technology adoption of Feder and Slade (1984) to incorporate social capital, and then tests the model with household data from two agro-ecological zones in rural Tanzania. Probit estimates of the model show that the probability of adoption of improved fertilizer in 1994-95 in the Central Plateau region in increasing in land under cultivation, cumulative adoption patterns, ethnically-based social affiliations, the adoption of improved seeds, the availability of credit and extension services, and the average years of residence in the village. In the Plains region, this probability is increasing in land under cultivation, ethnically based social affiliations and consultative norms. Overall, these results, which are robust after testing for the likely reverse causality of land under cultivation, support the finding that ethnically based and participatory social affiliations act as forms of social capital in the adoption decision.

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Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0225.

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Length: 32 pages
Date of creation: Jun 2002
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Handle: RePEc:mdl:mdlpap:0225

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Related research
Keywords: social capital; technology adoption; Tanzania;

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Find related papers by JEL classification:
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology
Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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  1. Pomp, Marc & Burger, Kees, 1995. "Innovation and imitation: Adoption of cocoa by Indonesian smallholders," World Development, Elsevier, vol. 23(3), pages 423-431, March. [Downloadable!] (restricted)
  2. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
    Other versions:
  3. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December. [Downloadable!] (restricted)
    Other versions:
  4. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Blackwell Publishing, vol. 48(1-3), pages 1-12. [Downloadable!] (restricted)
  5. Kaliba, Aloyce R.M. & Verkuijl, Hugo & Mwangi, Wilfred, 2000. "Factors Affecting Adoption Of Improved Maize Seeds And Use Of Inorganic Fertilizer For Maize Production In The Intermediate And Lowland Zones Of Tanzania," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), April. [Downloadable!]
  6. Grootaert, Christiaan, 1999. "Social capital, houshold welfare, and poverty in Indonesia," Policy Research Working Paper Series 2148, The World Bank. [Downloadable!]
  7. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-97, July.
    Other versions:
  8. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September. [Downloadable!] (restricted)
  9. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November. [Downloadable!] (restricted)
  10. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alberto Chong & Virgilio Galdo & Máximo Torero, 2005. "Does Privatization Deliver? Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment in Peru," RES Working Papers 4417, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Michael Woolcock, 2007. "Higher education, policy schools, and development studies: what should masters degree students be taught?," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(1), pages 55-73. [Downloadable!]
  3. Chantarat, Sommarat & Barrett , Christopher, 2008. "Social Network Capital, Economic Mobility and Poverty Traps," MPRA Paper 6841, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Grootaert, Christiaan, 1999. "Social capital, houshold welfare, and poverty in Indonesia," Policy Research Working Paper Series 2148, The World Bank. [Downloadable!]
  5. Shideler, David, 2004. "Determinants Of Individual Social Capital Investment," 2004 Annual meeting, August 1-4, Denver, CO 20224, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Katleen Van den Broeck & Stefan Dercon, 2007. "Social Interactions in Growing Bananas: Evidence from a Tanzanian Village," Discussion Papers 07-08, University of Copenhagen. Department of Economics. [Downloadable!]
  7. Coady, David & Xinyi Dai & Limin Wang, 2001. "Community programs and women's participation : the Chinese experience," Policy Research Working Paper Series 2622, The World Bank. [Downloadable!]
  8. Jonathan Isham, 2002. "Social Capital and Consumption among Agricultural Households," Middlebury College Working Paper Series 0202, Middlebury College, Department of Economics. [Downloadable!]
  9. Alberto Chong & Virgilio Galdo & Máximo Torero, 2005. "¿Cumple la privatización lo que promete? El acceso a los servicios telefónicos y el ingreso familiar en zonas rurales pobres empleando un experimento cuasinatural en Perú," RES Working Papers 4418, Inter-American Development Bank, Research Department. [Downloadable!]
  10. Farhad Ameen, 2007. "Social Capital and Economic Well-being," Working Papers id:984, esocialsciences.com. [Downloadable!]
  11. Xu, Zhiying & Jayne, T.S. & Govereh, J., 2006. "Input Subsidy Programs and Commercial Market Development: Modeling Fertilizer Use Decisions in a Two-Channel Marketing System," 2006 Annual meeting, July 23-26, Long Beach, CA 21270, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Agurto Adrianzen, Marcos, 2009. "The Role of Social Capital in the Adoption of Firewood Efficient Stoves in the Northern Peruvian Andes," MPRA Paper 15918, University Library of Munich, Germany. [Downloadable!]
  13. Matuschke, Ira, 2008. "Evaluating the impact of social networks in rural innovation systems: An overview," IFPRI discussion papers 816, International Food Policy Research Institute (IFPRI). [Downloadable!]
  14. Chong, Alberto & Galdo, Virgilio & Torero, Maximo, 2006. "Does Privatization Deliver? Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment for Peru," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25691, International Association of Agricultural Economists. [Downloadable!]
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