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Is agricultural technology adoption effective in reducing multidimensional poverty? Panel data evidence from Tanzania

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  • Mkupete, Mkupete Jaah

Abstract

This paper assesses the impact of agricultural technology adoption on poverty beyond headcount in Tanzania. Specifically, the paper examines the effects of adopting yield-increasing technologies, such as organic fertilizers and improved seeds, as well as risk-reducing technologies, including intercropping, on multidimensional poverty using panel data and an instrumental variable econometric approach. We find that the adoption of climate-smart technologies reduces the risk of a household being deprived in multiple non-monetary welfare dimensions. The largest impact on multidimensional poverty is achieved when these technologies are adopted in combination. Furthermore, adopting the full package of technologies has a more significant impact than adopting either a single technology or a combination of the two. The results also indicate that improved agricultural productivity and increased income from agricultural sales are key mechanisms through which CSA technologies reduce poverty. These findings underscore the importance of promoting bundled CSA adoption strategies to maximize poverty reduction and resilience among smallholder farmers.

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  • Mkupete, Mkupete Jaah, 2025. "Is agricultural technology adoption effective in reducing multidimensional poverty? Panel data evidence from Tanzania," Food Policy, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:jfpoli:v:135:y:2025:i:c:s0306919225001095
    DOI: 10.1016/j.foodpol.2025.102904
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