Impact of ICT-based Market Information Service Projects on Smallholder Farm Input Use and Productivity in Kenya
Information asymmetry has traditionally constrained smallholder farmers’ access to markets. Past studies indicate that it contributes to low adoption of modern agricultural technologies that have the capacity to enhance the productivity of smallholder farms. Low use of inputs results in low farm productivity, which curtails the transformation from subsistence to commercial agriculture, hence perpetuating the detention of smallholder farmers in the low equilibrium poverty trap. The desire to improve farmers’ access to markets has seen the emergence of a number of projects that employ Information and Communication Technology (ICT) tools in the provision of market information. However, little is known about the effects of such projects on smallholder agriculture, particularly in developing countries. The present study evaluates the impact of participation in an ICT-based market information service (MIS) project on farm input use (e.g. fertilizer, purchased seed, purchased manure, pesticides, labour etc.), labour and land productivity in Kenya. It employs propensity score-matching technique on cross-sectional data of 375 farmers from Bungoma, Kirinyaga and Migori counties in Kenya. The study finds that participation in an ICT-based MIS project has a positive and significant impact on the quantity of seeds and fertilizers used and improves land and labour productivity. Specifically, participants in an ICT-based project spent between Kshs 282.45 and 359.21 and Kshs 952.67 and 1035.10 more than non-participants on purchased seed and fertilizer per acre, respectively. Additionally, participants in the ICTbased MIS project have relatively higher land productivity (between Kshs 7,007.14 and 8,605.84) per acre than non-participants. Participation in an ICT-based MIS project also increases labour productivity by between Kshs 367.46 and Kshs 406.95 per acre. However, participation in an ICT-based MIS project has a negative and significant impact on the use hired, family and total labour. Participants in the ICT-based project use less labour by between 6.10 and 6.46, 7.95 and 13.49, and 15.68 and 21.96 man-days per acre for hired, family and total labour, respectively. The study discusses the implications of these findings for policy.
|Date of creation:||2012|
|Contact details of provider:|| Web page: http://www.afma-k.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caliendo, Marco & Kopeinig, Sabine, 2005.
"Some Practical Guidance for the Implementation of Propensity Score Matching,"
IZA Discussion Papers
1588, Institute for the Study of Labor (IZA).
- 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, 02.
- Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
- Jakob Svensson & David Yanagizawa, 2009. "Getting Prices Right: The Impact of the Market Information Service in Uganda," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 435-445, 04-05.
- Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2003.
"New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity,"
IZA Discussion Papers
750, Institute for the Study of Labor (IZA).
- 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.
- Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
- Jenny Aker, 2008. "Does Digital Divide or Provide? The Impact of Cell Phones on Grain Markets in Niger," Working Papers 154, Center for Global Development.
- Ruttan, Vernon W., 1977.
"Induced innovation and agricultural development,"
Elsevier, vol. 2(3), pages 196-216, August.
- 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.
- Ruttan, Vernon W. & Hayami, Yujiro, 1971. "Technology Transfer And Agricultural Development," Staff Papers 13993, University of Minnesota, Department of Applied Economics.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
- Kizito, Andrew M., 2009. "Estimating the Benefits from Improved Market Information," Graduate Research Masters Degree Plan B Papers 48844, Michigan State University, Department of Agricultural, Food, and Resource Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:afma12:159429. 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: (AgEcon Search)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.