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Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia

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  • Weir, Sharada
  • Knight, John

Abstract

This article investigates the role of schooling at the household and community levels in the adoption and diffusion of agricultural innovations in rural Ethiopia. We find that household-level education is important to the timing of adoption but less crucial to the question of whether a household has ever adopted fertilizer (since those without schooling may eventually copy the educated). Community-level education substitutes for low levels of household education, encouraging uneducated farmers to adopt sooner than would be predicted in the absence of educated neighbors. Moreover, community-level education is complementary to household education in determining which farmers will eventually adopt. Thus, evidence is presented to suggest that there are two externality effects: educated farmers are early innovators, providing an example that may be copied by less-educated farmers; and educated farmers are better able to copy those who innovate first, enhancing diffusion of the new technology more widely within the site.

Suggested Citation

  • Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
  • Handle: RePEc:ucp:ecdecc:y:2004:v:53:i:1:p:93-113
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    File URL: http://dx.doi.org/10.1086/423254
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    References listed on IDEAS

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    Cited by:

    1. Guerzoni, Marco & Jordan, Alexander, 2016. "“Cursed is the ground because of you”: Religion, Ethnicity, and the Adoption of Fertilizers in Rural Ethiopia," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201603, University of Turin.
    2. Currarini, Sergio & Marchiori, Carmen & Tavoni, Alessandro, 2016. "Network economics and the environment: insights and perspectives," LSE Research Online Documents on Economics 63951, London School of Economics and Political Science, LSE Library.
    3. Heather Congdon Fors & Kenneth Houngbedji & Annika Lindskog, 2015. "Land Certification and Schooling in Rural Ethiopia," PSE Working Papers halshs-01202695, HAL.
    4. Congdon Fors, Heather & Houngbedji, Kenneth & Lindskog, Annika, 2015. "Land Certification and Schooling in Rural Ethiopia," Working Papers in Economics 628, University of Gothenburg, Department of Economics, revised Sep 2017.
    5. Valentina Bosetti & Melanie Heugues & Alessandro Tavoni, 2017. "Luring others into climate action: coalition formation games with threshold and spillover effects," Oxford Economic Papers, Oxford University Press, vol. 69(2), pages 410-431.
    6. Guerzoni, Marco & Jordan, Alexander, 2016. "“Cursed is the ground because of you”: Religion, Ethnicity, and the Adoption of Fertilizers in Rural Ethiopia," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201605, University of Turin.
    7. John Knight & Li Shi & Deng Quheng, 2008. "Education and the Poverty Trap in Rural China," CSAE Working Paper Series 2008-02, Centre for the Study of African Economies, University of Oxford.
    8. Julie SUBERVIE, 2006. "The impact of world price instability on agricultural supply according to several macroeconomic factors," Working Papers 200604, CERDI.
    9. Jones, Michael S. & Rejesus, Roderick M. & Brown, Zachary S. & Yorobe, Jose M., 2017. "Do farmers with less education realize higher yield gains from GM maize in developing countries? Evidence from the Philippines," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252822, Southern Agricultural Economics Association.
    10. Sanzidur Rahman, 2011. "Resource use efficiency under self‐selectivity: the case of Bangladeshi rice producers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 273-290, April.
    11. Bachewe, Fantu Nisrane & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu Seyoum, 2015. "Agricultural growth in Ethiopia (2004-2014): Evidence and drivers:," ESSP working papers 81, International Food Policy Research Institute (IFPRI).
    12. Mwangi S. Kimenyi & Germano Mwabu & Damiano Kulundu Manda, 2006. "Human Capital Externalities and Private Returns to Education in Kenya," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 493-513, Summer.
    13. M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 17-33.

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