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Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?

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  • Verkaart, Simone
  • Munyua, Bernard G.
  • Mausch, Kai
  • Michler, Jeffrey D.

Abstract

We analyse the impact of improved chickpea adoption on welfare in Ethiopia using three rounds of panel data. First, we estimate the determinants of improved chickpea adoption using a double hurdle model. We apply a control function approach with correlated random effects to control for possible endogeneity resulting from access to improved seed and technology transfer activities. To instrument for these variables we develop novel distance weighted measures of a household’s neighbours’ access to improved seed and technology transfer activities. Second, we estimate the impact of area under improved chickpea cultivation on household income and poverty. We apply a fixed effects instrumental variables approach where we use the predicted area under cultivation from the double hurdle model as an instrument for observed area under cultivation. We find that improved chickpea adoption significantly increases household income while also reducing household poverty. Finally, we disaggregate results by landholding to explore whether the impact of adoption has heterogeneous effects. Adoption favoured all but the largest landholders, for who the new technology did not have a significant impact on income. Overall, increasing access to improved chickpea appears a promising pathway for rural development in Ethiopia’s chickpea growing regions.

Suggested Citation

  • Verkaart, Simone & Munyua, Bernard G. & Mausch, Kai & Michler, Jeffrey D., 2017. "Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?," Food Policy, Elsevier, vol. 66(C), pages 50-61.
  • Handle: RePEc:eee:jfpoli:v:66:y:2017:i:c:p:50-61
    DOI: 10.1016/j.foodpol.2016.11.007
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    2. Garbero, A. & Marion, P., 2018. "IFAD RESEARCH SERIES 28 - Understanding the dynamics of adoption decisions and their poverty impacts: the case of improved maize seeds in Uganda," IFAD Research Series 280077, International Fund for Agricultural Development (IFAD).
    3. Michler, Jeffrey D. & Baylis, Kathy & Arends-Kuenning, Mary & Mazvimavi, Kizito, 2019. "Conservation agriculture and climate resilience," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 148-169.
    4. Adejumo, O. & Okoruwa, V. & Abass, A., 2018. "Improved Post-Harvest Technology: What Impact on Nigeria s Smallholder Cassava Starch Processors Welfare?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277054, International Association of Agricultural Economists.
    5. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    6. Ermias Engida Legesse & Amit Kumar Srivastava & Arnim Kuhn & Thomas Gaiser, 2019. "Household Welfare Implications of Better Fertilizer Access and Lower Use Inefficiency: Long-Term Scenarios for Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 11(14), pages 1-24, July.
    7. Ainembabazi, John Herbert & Abdoulaye, Tahirou & Feleke, Shiferaw & Alene, Arega & Dontsop-Nguezet, Paul M. & Ndayisaba, Pierre Celestin & Hicintuka, Cyrille & Mapatano, Sylvain & Manyong, Victor, 2018. "Who benefits from which agricultural research-for-development technologies? Evidence from farm household poverty analysis in Central Africa," World Development, Elsevier, vol. 108(C), pages 28-46.
    8. Tesfay, M., 2018. "Adoption of diversified farm technology in a semi arid of northern Ethiopia: A Panel Data Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276008, International Association of Agricultural Economists.
    9. Garbero, A. & Songsermsawas, T., 2018. "IFAD RESEARCH SERIES 31 - Impact of modern irrigation on household production and welfare outcomes: evidence from the participatory small-scale irrigation development programme (PASIDP) project in Eth," IFAD Research Series 280080, International Fund for Agricultural Development (IFAD).
    10. Wossen, Tesfamicheal & Alene, Arega & Abdoulaye, Tahirou & Feleke, Shiferaw & Manyong, Victor, 2019. "Agricultural technology adoption and household welfare: Measurement and evidence," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    11. Sylvester O. Ogutu & Matin Qaim, 2018. "Commercialization of the small farm sector and multidimensional poverty," GlobalFood Discussion Papers 269561, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    12. Yigezu, Yigezu A. & Alwang, Jeffrey & Rahman, M. Wakilur & Mollah, M. Bazlur R. & El-Shater, Tamer & Aw-Hassan, Aden & Sarker, Ashutosh, 2019. "Is DNA fingerprinting the gold standard for estimation of adoption and impacts of improved lentil varieties?," Food Policy, Elsevier, vol. 83(C), pages 48-59.

    More about this item

    Keywords

    Improved chickpea; Technology adoption; Poverty; Control function; Ethiopia;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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