IDEAS home Printed from https://ideas.repec.org/p/ags/aesc19/289678.html
   My bibliography  Save this paper

Risk Preference as an Endogenous Determinant of Improved Rice Technology Adoption Decisions: Evidence from Nigeria

Author

Listed:
  • Ambali, Omotuyole Isiaka
  • Areal, Francisco Jose
  • Geogantzis, Nikolaos

Abstract

Improved agricultural innovation is a panacea to economic development yet the level of adoption of the available improved agricultural technology is mixed in most developing countries. While attempts have been made to identify extrinsic factors in adoption decisions, less attention is given to the intrinsic variables. This study examines the roles of farmers‟ risk preferences and spatial dependence in the decisions to adopt higher yielding rice varieties. We utilize experimental and survey data from Nigeria and estimated instrumental probit model in two stages: risk model first, and adoption decisions model second. We account for the spatial heterogeneity in adoption and found the spatial lags of the risk attitude variables as significant instruments for unobserved variables like environmental factors. More importantly, risk preference is a significant endogenous determinant of adoption decisions. Correlation between spatial dependence and risk preference is an indication of the existence of social interaction and learning effects suggesting the diffusion of HYV may be enhanced through farmers‟ neighbours, because social interaction is an effective tool for information dissemination in the rural areas. Specific attention should not only be given to farmers‟ individual factors but also the group attributes like spatial aspects in decision making.

Suggested Citation

  • Ambali, Omotuyole Isiaka & Areal, Francisco Jose & Geogantzis, Nikolaos, 2019. "Risk Preference as an Endogenous Determinant of Improved Rice Technology Adoption Decisions: Evidence from Nigeria," 93rd Annual Conference, April 15-17, 2019, Warwick University, Coventry, UK 289678, Agricultural Economics Society - AES.
  • Handle: RePEc:ags:aesc19:289678
    DOI: 10.22004/ag.econ.289678
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/289678/files/Omotuyole_Ambali_Adoption.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.289678?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Crop Production/Industries; Risk and Uncertainty;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aesc19:289678. 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: . General contact details of provider: https://edirc.repec.org/data/aesukea.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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    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.