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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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    References listed on IDEAS

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    5. 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.
    6. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2004. "New evidence on the effects of job creation schemes in Germany--a matching approach with threefold heterogeneity," Research in Economics, Elsevier, vol. 58(4), pages 257-302, December.
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    8. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    9. Okello, Julius Juma, 2010. "Does use of ICT-based market information services (MIS) improve welfare of smallholder farm households: Evidence from Kenya," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61251, Agricultural and Applied Economics Association.
    10. Kuyiah, Joanne Wasswa & Obare, Gideon A. & Herrero, Mario & Waithaka, Michael M., 2006. "Agriculture, Income Risks and Rural Poverty Dynamics: Strategies of Smallholder Producers in Kenya," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25596, International Association of Agricultural Economists.
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    Cited by:

    1. 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).
    2. 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.
    3. 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.
    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. 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.
    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 276460, Collaborative Masters Program in Agricultural and Applied Economics.

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    Keywords

    Crop Production/Industries; Production Economics; Research and Development/Tech Change/Emerging Technologies;
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