Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia
This paper evaluates the potential impact of adoption of improved legume technologies on rural household welfare measured by consumption expenditure in rural Ethiopia and Tanzania. The study utilizes cross-sectional farm household level data collected in 2008 from a randomly selected sample of 1313 households (700 in Ethiopia and 613 in Tanzania). The causal impact of technology adoption is estimated by utilizing endogenous switching regression. This helps us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Our analysis reveals that adoption of improved agricultural technologies has a significant positive impact consumption expenditure (in per adult equivalent terms) in rural Ethiopia and Tanzania. This confirms the potential role of technology adoption in improving rural household welfare as higher consumption expenditure from improved technologies translate into lower poverty, higher food security and greater ability to withstand risk. An analysis of the determinants of adoption highlighted inadequate local supply of seed, access to information and perception about the new cultivars as key constraints for technology adoption.
References listed on IDEAS
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.:
- 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, Cambridge University Press, vol. 32(01), pages 35-47, April.
- Berhanu Gebremedhin & Moti Jaleta & Dirk Hoekstra, 2009. "Smallholders, institutional services, and commercial transformation in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 773-787, November.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Arega Alene & V. Manyong, 2007. "The effects of education on agricultural productivity under traditional and improved technology in northern Nigeria: an endogenous switching regression analysis," Empirical Economics, Springer, vol. 32(1), pages 141-159, April.
- Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2010.
"Does adaptation to climate change provide food security?: a micro-perspective from Ethiopia,"
LSE Research Online Documents on Economics
37592, London School of Economics and Political Science, LSE Library.
- Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
- Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2010. "Does adaptation to climate change provide food security? A micro-perspective from Ethiopia," GRI Working Papers 19, Grantham Research Institute on Climate Change and the Environment.
- Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
- Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
- Alwang, Jeffrey & Siegel, Paul B., 2003.
"Measuring the impacts of agricultural research on poverty reduction,"
Blackwell, vol. 29(1), pages 1-14, July.
- Alwang, Jeffrey Roger & Siegel, Paul B., 2003. "Measuring the impacts of agricultural research on poverty reduction," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 29(1), July.
- Heckman, J J & Tobias, Justin & Vytlacil, Ed, 2001.
"Four Parameters of Interest in the Evaluation of Social Programs,"
Staff General Research Papers
12022, Iowa State University, Department of Economics.
- James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, Southern Economic Association, vol. 68(2), pages 210-223, October.
- Kaliba, Aloyce R. & 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.
- 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.
- Wubeneh, Nega Gebreselassie & Sanders, J.H., 2006. "Farm-level adoption of sorghum technologies in Tigray, Ethiopia," Agricultural Systems, Elsevier, vol. 91(1-2), pages 122-134, November.
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- David W. Carter & J. Walter Milon, 2005. "Price Knowledge in Household Demand for Utility Services," Land Economics, University of Wisconsin Press, vol. 81(2).
- Otsuka, Keijiro, 2000. "Role of agricultural research in poverty reduction: lessons from the Asian experience," Food Policy, Elsevier, vol. 25(4), pages 447-462, August.
- Bekele A. Shiferaw & Tewodros A. Kebede & Liang You, 2008. "Technology adoption under seed access constraints and the economic impacts of improved pigeonpea varieties in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 309-323, November.
- P. Kristjanson & I. Okike & S. Tarawali & B. B. Singh & V. M. Manyong, 2005. "Farmers' perceptions of benefits and factors affecting the adoption of improved dual-purpose cowpea in the dry savannas of Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 195-210, 03.
- Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
- Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192.
- 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.
- Byerlee, Derek, 2000. "Targeting poverty alleviation in priority setting for agricultural research," Food Policy, Elsevier, vol. 25(4), pages 429-445, August.
- Becerril, Javier & Abdulai, Awudu, 2010. "The Impact of Improved Maize Varieties on Poverty in Mexico: A Propensity Score-Matching Approach," World Development, Elsevier, vol. 38(7), pages 1024-1035, July.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
- 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.
- Mulubrhan Amare & Solomon Asfaw & Bekele Shiferaw, 2012. "Welfare impacts of maize–pigeonpea intensification in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 43(1), pages 27-43, 01.
When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:37:y:2012:i:3:p:283-295. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.