IDEAS home Printed from https://ideas.repec.org/a/oup/wbecrv/v26y2012i3p383-414.html
   My bibliography  Save this article

Impact of SMS-Based Agricultural Information on Indian Farmers

Author

Listed:
  • Marcel Fafchamps
  • Bart Minten

Abstract

This study estimates the benefits that Indian farmers derive from market and weather information delivered to their mobile phones by a commercial service called Reuters Market Light (RML). We conduct a controlled randomized experiment in 100 villages of Maharashtra. Treated farmers associate RML information with a number of decisions they have made, and we find some evidence that treatment affected spatial arbitrage and crop grading. But the magnitude of these effects is small. We find no statistically significant average effect of treatment on the price received by farmers, crop value-added, crop losses resulting from rainstorms, or the likelihood of changing crop varieties and cultivation practices. Although disappointing, these results are in line with the market take-up rate of the RML service in the study districts, which shows small numbers of clients in aggregate and a relative stagnation in take-up over the study period. Copyright 2012, Oxford University Press.

Suggested Citation

  • Marcel Fafchamps & Bart Minten, 2012. "Impact of SMS-Based Agricultural Information on Indian Farmers," World Bank Economic Review, World Bank Group, vol. 26(3), pages 383-414.
  • Handle: RePEc:oup:wbecrv:v:26:y:2012:i:3:p:383-414
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/wber/lhr056
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Magnus Blomstrom & Ari Kokko & Mario Zejan, 1992. "Host Country Competition and Technology Transfer by Multinationals," NBER Working Papers 4131, National Bureau of Economic Research, Inc.
    2. Burnside, A. Craig & Eichenbaum, Martin S. & Rebelo, Sergio T., 1996. "Sectoral Solow residuals," European Economic Review, Elsevier, vol. 40(3-5), pages 861-869, April.
    3. Nelson, Richard R & Pack, Howard, 1999. "The Asian Miracle and Modern Growth Theory," Economic Journal, Royal Economic Society, vol. 109(457), pages 416-436, July.
    4. Aitken, Brian & Harrison, Ann & DEC, 1994. "Do domestic firms benefit from foreign direct investment? Evidence from panel data," Policy Research Working Paper Series 1248, The World Bank.
    5. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    6. Pack, Howard & Saggi, Kamal, 1997. "Inflows of Foreign Technology and Indigenous Technological Development," Review of Development Economics, Wiley Blackwell, vol. 1(1), pages 81-98, February.
    7. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    8. Feenstra, Robert C & Markusen, James R & Zeile, William, 1992. "Accounting for Growth with New Inputs: Theory and Evidence," American Economic Review, American Economic Association, vol. 82(2), pages 415-421, May.
    9. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    10. Wang, Jian-Ye & Blomstrom, Magnus, 1992. "Foreign investment and technology transfer : A simple model," European Economic Review, Elsevier, vol. 36(1), pages 137-155, January.
    11. Grossman, Gene M. & Helpman, Elhanan, 1995. "Technology and trade," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 25, pages 1279-1337 Elsevier.
    12. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    13. Nelson, Richard R. & Wolff, Edward N., 1997. "Factors behind cross-industry differences in technical progress," Structural Change and Economic Dynamics, Elsevier, vol. 8(2), pages 205-220, June.
    14. Susanto Basu & John G. Fernald, 1995. "Aggregate Productivity and the Productivity of Aggregates," NBER Working Papers 5382, National Bureau of Economic Research, Inc.
    15. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    16. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
    17. Evenson, Robert E. & Westphal, Larry E., 1995. "Technological change and technology strategy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 37, pages 2209-2299 Elsevier.
    18. Das, Sanghamitra, 1987. "Externalities, and technology transfer through multinational corporations A theoretical analysis," Journal of International Economics, Elsevier, vol. 22(1-2), pages 171-182, February.
    19. Blomstrom, Magnus & Persson, Hakan, 1983. "Foreign investment and spillover efficiency in an underdeveloped economy: Evidence from the Mexican manufacturing industry," World Development, Elsevier, vol. 11(6), pages 493-501, June.
    20. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
    21. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aker, Jenny C. & Ksoll, Christopher, 2016. "Can mobile phones improve agricultural outcomes? Evidence from a randomized experiment in Niger," Food Policy, Elsevier, vol. 60(C), pages 44-51.
    2. Pierluigi Montalbano & Rebecca Pietrelli & Luca Salvatici, 2017. "Market chain participation and food security: the case of the Ugandan maize farmers," Working Papers 2/17, Sapienza University of Rome, DISS.
    3. David-Benz, Hélène & Andriandralambo, Norontsoa & Soanjara, Helgina & Chimirri, Chiara & Rahelizatovo, Noro & Rivolala, Bezaka, 2016. "Improving access to market information: a driver of change in marketing strategies for small producers?," 149th Seminar, October 27-28, 2016, Rennes, France 245073, European Association of Agricultural Economists.
    4. repec:afe:journl:v:19:y:2017:i:1:p:161-167 is not listed on IDEAS
    5. Tang, Christopher S. & Sodhi, ManMohan S. & Formentini, Marco, 2016. "An analysis of partially-guaranteed-price contracts between farmers and agri-food companies," European Journal of Operational Research, Elsevier, vol. 254(3), pages 1063-1073.
    6. Lapinski, Maria Knight & Funk, Julie A. & Moccia, Lauren T., 2015. "Recommendations for the role of social science research in One Health," Social Science & Medicine, Elsevier, vol. 129(C), pages 51-60.
    7. Evita Pangaribowo & Nicolas Gerber & Pascal Tillie, 2013. "Assessing the FNS impacts of technological and institutional innovations and future innovation trends," FOODSECURE Working papers 11, LEI Wageningen UR.
    8. Van Campenhout, Bjorn, 2016. "Risk and Sustainable Crop Intensification," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246917, African Association of Agricultural Economists (AAAE).
    9. Abdul-Salam, Yakubu & Phimister, Euan, 2014. "Modelling the Impact of Market Imperfections on Farm Household Investment in Stand-Alone Solar PV," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169742, Agricultural Economics Society.
    10. Nakasone, Eduardo, 2013. "The Role of Price Information in Agricultural Markets: Experimental Evidence from Rural Peru," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150418, Agricultural and Applied Economics Association.
    11. ManMohan S. Sodhi & Christopher S. Tang, 2016. "Supply chain opportunities at the bottom of the pyramid," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 125-134, June.
    12. Arimoto, Yutaka & Kono, Hisaki & Ralandison, Tsilavo & Sakurai, Takeshi & Takahashi, Kazushi, 2015. "Understanding traders' regional arbitage : the case of rice traders in Antananarivo, Madagascar," IDE Discussion Papers 505, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Balram Avittathur & Jayanth Jayaram, 2016. "Supply chain management in emerging economies," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 117-124, June.
    14. Kaila Heidi, 2015. "Comparing the development of agricultural technology and information technology in rural Vietnam," WIDER Working Paper Series 091, World Institute for Development Economic Research (UNU-WIDER).
    15. Tadesse, Getaw & Bahiigwa, Godfrey, 2015. "Mobile Phones and Farmers’ Marketing Decisions in Ethiopia," World Development, Elsevier, vol. 68(C), pages 296-307.
    16. repec:eee:transa:v:99:y:2017:i:c:p:61-79 is not listed on IDEAS
    17. Shimamoto, Daichi & Yamada, Hiroyuki & Gummert, Martin, 2015. "Mobile phones and market information: Evidence from rural Cambodia," Food Policy, Elsevier, vol. 57(C), pages 135-141.
    18. Larochelle, Catherine & Alwang, Jeffrey & Travis, Elli, 2016. "Did you really get the message? Using text reminders to stimulate adoption of agricultural technologies," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235423, Agricultural and Applied Economics Association.
    19. Blumenstock, Joshua E. & Eagle, Nathan & Fafchamps, Marcel, 2016. "Airtime transfers and mobile communications: Evidence in the aftermath of natural disasters," Journal of Development Economics, Elsevier, vol. 120(C), pages 157-181.
    20. Sandip Mitra & Dilip Mookherjee & Maximo Torero & Sujata Visaria, 2013. "Asymmetric Information and Middleman Margins: An Experiment with West Bengal Potato Farmers," Working Papers id:5545, eSocialSciences.
    21. Mo, Di & Luo, Renfu & Liu, Chengfang & Zhang, Huiping & Zhang, Linxiu & Medina, Alexis & Rozelle, Scott, 2014. "Text Messaging and its Impacts on the Health and Education of the Poor: Evidence from a Field Experiment in Rural China," World Development, Elsevier, vol. 64(C), pages 766-780.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:26:y:2012:i:3:p:383-414. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.