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A Matching Approach to Analyze the Impact of New Agricultural Technologies: Productivity and Technical Efficiency in Niger

  • Abdoulaye, Ibrahim Djido
  • Sanders, John H.
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    In this paper we assess the performance of farmers adopting an improved sorghum technology package in the Maradi region of Niger. A propensity score matching method is used to address self-selection bias into the program. First, we estimate a propensity model to participate in the extension program, examine factors affecting the participation, and assess the average adoption effect on participants by testing for productivity difference between adopters and non-adopters. Secondly, we estimate a stochastic production technology frontier to compare technical efficiency of farmers in the extension program. We test for returns to scale, examine factors affecting technical efficiency of participants, and compare technical efficiency scores of participants based on their compliance to program recommendations. Participants in the extension program are older, have less farming experience, and operate on larger farm sizes. After controlling for bias, there is very little change in the yield differences, which in both cases are substantial. There is some evidence for greater productivity of the smaller size producers.Technical efficiency of participants is increasing overtime, younger participants are technically more efficient and farming experience increases significantly participants’ technical efficiency. Good followers of the fertilization technique recommendation are much more technically efficient.

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    File URL: http://purl.umn.edu/150434
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    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150434.

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    Date of creation: 2013
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    Handle: RePEc:ags:aaea13:150434
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    1. Adesina, Akinwumi A. & Abbott, Philip C. & Sanders, John H., 1988. "Ex-ante risk programming appraisal of new agricultural technology: Experiment station fertilizer recommendations in Southern Niger," Agricultural Systems, Elsevier, vol. 27(1), pages 23-34.
    2. Lisa A. Cameron, 1999. "The Importance of Learning in the Adoption of High-Yielding Variety Seeds," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 83-94.
    3. Boris Bravo-Ureta & William Greene & Daniel Solís, 2012. "Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project," Empirical Economics, Springer, vol. 43(1), pages 55-72, August.
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    5. Adesina, Akinwumi A. & Sanders, John H., 1991. "Peasant farmer behavior and cereal technologies: Stochastic programming analysis in Niger," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 5(1), January.
    6. Brian W. Gould & William E. Saupe & Richard M. Klemme, 1989. "Conservation Tillage: The Role of Farm and Operator Characteristics and the Perception of Soil Erosion," Land Economics, University of Wisconsin Press, vol. 65(2), pages 167-185.
    7. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
    8. Carlos D. Mayen & Joseph V. Balagtas & Corinne E. Alexander, 2010. "Technology Adoption and Technical Efficiency: Organic and Conventional Dairy Farms in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 181-195.
    9. Rajeev H. Dehejia & Sadek Wahba, 1998. "Propensity Score Matching Methods for Non-experimental Causal Studies," NBER Working Papers 6829, National Bureau of Economic Research, Inc.
    10. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    11. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
    12. D'Souza, Gerard E. & Cyphers, Douglas & Phipps, Tim T., 1993. "Factors Affecting The Adoption Of Sustainable Agricultural Practices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), October.
    13. Felix G. Baquedano & John H. Sanders, 2006. "Introducing inventory credit into Nigerien agriculture: improving technology diffusion," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 297-314, September.
    14. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    15. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
    16. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
    17. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    18. repec:zwi:journl:v:43:y:2012:i:1:p:55-72 is not listed on IDEAS
    19. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    20. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
    21. Shapiro, B. I. & Sanders, J. H. & Reddy, K. C. & Baker, T. G., 1993. "Evaluating and adapting new technologies in a high-risk agricultural system--Niger," Agricultural Systems, Elsevier, vol. 42(1-2), pages 153-171.
    22. Coulibaly, Ousmane & Vitale, Jeffrey D. & Sanders, John H., 1998. "Expected effects of devaluation on cereal production in the Sudanian Region of Mali," Agricultural Systems, Elsevier, vol. 57(4), pages 489-503, August.
    23. Adesina, Akinwumi A. & Sanders, John H., 1991. "Peasant farmer behavior and cereal technologies: Stochastic programming analysis in Niger," Agricultural Economics, Blackwell, vol. 5(1), pages 21-38, January.
    24. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
    25. Christine A. Ervin & David E. Ervin, 1982. "Factors Affecting the Use of Soil Conservation Practices: Hypotheses, Evidence, and Policy Implications," Land Economics, University of Wisconsin Press, vol. 58(3), pages 277-292.
    26. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
    27. Rahm, M. & Huffman, Wallace, 1984. "The Adoption of Reduced Tillage: The Role of Human Capital and Other Variables," Staff General Research Papers 10977, Iowa State University, Department of Economics.
    28. Shapiro, B. I. & Sanders, J. H., 1998. "Fertilizer use in semiarid West Africa: Profitability and supporting policy," Agricultural Systems, Elsevier, vol. 56(4), pages 467-482, April.
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