Agricultural technology and poverty reduction: a micro-level analysis of causal effects
AbstractAgricultural 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 effects" of agricultural technology adoption in 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 tackles a methodological issue in assessing the "causal effect" of technological change on farm-household wellbeing through the non-parametric p-score matching analysis. It pursues a targeted evaluation of whether adopting a modern seed technology causes resource-poor farmers to improve their income and decrease the propensity to fall below the poverty line. It finds a robust and positive effect of agricultural technology adoption on farm household 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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Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2005-14.
Date of creation: 01 Jan 2005
Date of revision:
Farm household behaviour; Technology adoption; Poverty alleviation; Propensity score matching;
Other versions of this item:
- Mariapia Mendola, 2003. "Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects," Development Working Papers 179, Centro Studi Luca d\'Agliano, University of Milano.
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - 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
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