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Impact of Information and Communication Technology-based Market Information Services on Smallholder Farm Input Use and Productivity: The Case of Kenya

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  • Ogutu, Sylvester O.
  • Okello, Julius J.
  • Otieno, David J.

Abstract

Information asymmetry has traditionally constrained smallholder farmers’ access to markets. Past studies indicate that it inhibits adoption of modern technologies that have the capacity to enhance productivity of smallholder farms. Hence, farm productivity and agricultural transformation has been stifled, leaving smallholder famers in grinding poverty. Improved smallholder farmers’ access to markets via the recent Information and Communication Technology (ICT) platforms could reverse this scenario. This study uses Propensity Score Matching (PSM) technique to evaluate the impact of participation in an ICT-based market information service (MIS) project on farm input use and productivity in Kenya. It finds strong empirical evidence on the benefits of ICT use in market linkage. Specifically, it finds that participation in the ICT-based MIS project has positive and significant impact on the usage of improved seeds and fertilizers. It also improves land and labour productivity, but has negative and significant impact on the usage of hired and family labour. These findings have vital policy implications on the use of ICT tools as a development strategy.

Suggested Citation

  • Ogutu, Sylvester O. & Okello, Julius J. & Otieno, David J., 2013. "Impact of Information and Communication Technology-based Market Information Services on Smallholder Farm Input Use and Productivity: The Case of Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 157770, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae13:157770
    DOI: 10.22004/ag.econ.157770
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    Cited by:

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    2. Melia, Elvis, 2020. "African jobs in the digital era: Export options with a focus on online labour," IDOS Discussion Papers 3/2020, German Institute of Development and Sustainability (IDOS).
    3. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    4. Guo, Jianxin & Jin, Songqing & Chen, Lei & Wang, Min & Zhang, Junfeng & Sun, Sufen, 2015. "The Effects of Distance Education on Agricultural Performance and Household Income: Evidence from Suburban Beijing," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205754, Agricultural and Applied Economics Association.
    5. Nasir Abbas Khan & Qijie Gao & Shoukat Ali & Babar Shahbaz & Palwasha Khan & Muhammad Abid, 2022. "Analyzing ICT-enabled agricultural advisory services in Pakistan: evidence from a marginalized region of Punjab province," Electronic Commerce Research, Springer, vol. 22(4), pages 1107-1129, December.
    6. Ashimwe, Olive, 2016. "An Economic Analysis Of Impact Of Weather Index-Based Crop Insurance On Household Income In Huye District Of Rwanda," Research Theses 265675, Collaborative Masters Program in Agricultural and Applied Economics.

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