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Adoption and Impact of Improved Groundnut Varieties on Rural Poverty: Evidence from Rural Uganda

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  • Kassie, Menale
  • Shiferaw, Bekele
  • Muricho, Geoffrey

Abstract

This paper evaluates the ex-post impact of adopting improved groundnut varieties on crop income and rural poverty in rural Uganda. The study utilizes cross-sectional farm household data collected in 2006 in seven districts of Uganda. We estimated the average adoption premium using propensity score matching (PSM), poverty dominance analysis tests, and a linear regression model to check robustness of results. Poverty dominance analysis tests and linear regression estimates are based on matched observations of adopters and non-adopters obtained from the PSM. This helped us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Furthermore, we checked covariate balancing with a standardized bias measure and sensitivity of the estimated adoption effect to unobserved selection bias, using the Rosenbaum bounds procedure. The paper computes income-based poverty measures and investigates their sensitivity to the use of different poverty lines. We found that adoption of improved groundnut technologies has a significant positive impact on crop income and poverty reduction. These results are not sensitive to unobserved selection bias; therefore, we can be confident that the estimated adoption effect indicates a pure effect of improved groundnut technology adoption.

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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-10-11-efd.

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Date of creation: 25 May 2010
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Handle: RePEc:rff:dpaper:dp-10-11-efd

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Keywords: groundnut technology adoption; crop income; poverty alleviation; propensity score matching; switching regression; stochastic dominance; Rosenbaum bounds; Uganda;

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References

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  1. Ingrid Rhinehart & C. Michael Deom, 2007. "Peanut Research and Poverty Reduction: Impacts of Variety Improvement to Control Peanut Viruses in Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 448-460.
  2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  3. Chen, Shaohua & Datt, Gaurav & Ravallion, Martin, 1994. "Is Poverty Increasing in the Developing World?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(4), pages 359-76, December.
  4. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  5. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  6. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
  7. Andreas Drichoutis & Panagiotis Lazaridis & Rodolfo Nayga, 2009. "Can Mediterranean diet really influence obesity? Evidence from propensity score matching," The European Journal of Health Economics, Springer, vol. 10(4), pages 371-388, October.
  8. 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.
  9. Pinstrup-Andersen, Per & Pandya-Lorch, Rajul, 1995. "Agricultural growth is the key to poverty alleviation in low-income developing countries," 2020 vision briefs 15, International Food Policy Research Institute (IFPRI).
  10. 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.
  11. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
  12. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
  13. Kasenge, Valentine & Taylor, Daniel B. & Bonabana-Wabbi, Jackline, 2006. "A Limited Dependent Variable Analysis of Integrated Pest Management Adoption in Uganda," 2006 Annual meeting, July 23-26, Long Beach, CA 21040, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, Social Science Research Center Berlin (WZB).
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Citations

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Cited by:
  1. Dambala Gelo & Steven F. Koch, 2012. "Welfare and Common Property Rights Forestry: Evidence from Ethiopian Villages," Working Papers 277, Economic Research Southern Africa.
  2. Nazli, Hina & Orden, David & Sarker, Rakhal & Meilke, Karl D., 2012. "Bt Cotton Adoption and Wellbeing of Farmers in Pakistan," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126172, International Association of Agricultural Economists.
  3. Ibrahim, Mohammed & Florkowski, Wojciech J. & Kolavalli, Shashidhara, 2012. "Determinants of Farmer Adoption of Improved Peanut Varieties and their Impact on Farm Income: Evidence from Northern Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125000, Agricultural and Applied Economics Association.
  4. Mausch, K. & Chiwaula, L. & Irshad, A. & Bantilan, C. & Silim, S. & Siambi, M., 2013. "Strategic Breeding Investments for Legume Expansion: Lessons Learned from the Comparison of Groundnut and Pigeonpea," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152168, Australian Agricultural and Resource Economics Society.
  5. Dambala Gelo & Steven F. Koch, 2011. "The Welfare Effect of Common Property Forestry Rights:Evidence from Ethiopian Villages," Working Papers 201123, University of Pretoria, Department of Economics.
  6. Harris, David & Orr, Alastair, 2014. "Is rainfed agriculture really a pathway from poverty?," Agricultural Systems, Elsevier, vol. 123(C), pages 84-96.

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