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Welfare Effects of Agricultural Technology adoption: the case of improved groundnut varieties in rural Malawi

Author

Listed:
  • Simtowe, Franklin
  • Kassie, Menale
  • Asfaw, Solomon
  • Shiferaw, Bekele A.
  • Monyo, Emmanuel
  • Siambi, Moses

Abstract

This paper applies a program evaluation technique to assess the causal effect of the adoption of improved groundnut technologies on consumption expenditure and poverty measured by headcount, poverty gap and poverty severity indices. The paper is based on a cross-sectional farm household level data collected in 2008 from a sample of 594 households in rural Malawi. A sensitivity analysis is conducted to test the robustness of the propensity score based results using the rbounds test and the mean absolute standardized bias (MASB) between adopters and non-adopters. The analysis reveals robust and positive and significant impacts of improved groundnut variety adoption on per capita consumption expenditure and on poverty reduction. The findings generally provide justification for continued public and private investment in groundnut research and outreach in Malawi.

Suggested Citation

  • Simtowe, Franklin & Kassie, Menale & Asfaw, Solomon & Shiferaw, Bekele A. & Monyo, Emmanuel & Siambi, Moses, 2012. "Welfare Effects of Agricultural Technology adoption: the case of improved groundnut varieties in rural Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126761, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126761
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    File URL: http://purl.umn.edu/126761
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    References listed on IDEAS

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    1. Yoko Kijima & Keijiro Otsuka & Dick Sserunkuuma, 2008. "Assessing the impact of NERICA on income and poverty in central and western Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 327-337, May.
    2. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    3. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    4. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
    5. Mahabub HOSSAIN & Manik L. BOSE & Bazlul A. A. MUSTAFI, 2006. "Adoption And Productivity Impact Of Modern Rice Varieties In Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 44(2), pages 149-166.
    6. Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192.
    7. Paul Mosley & Sanzidur Rahman, 1999. "Impact of technological change on income distribution and poverty in Bangladesh agriculture: an empirical analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 935-955.
    8. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
    9. 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.
    10. Diop, Ndiame & Beghin, John & Sewadeh, Mirvat, 2004. "Groundnut policies, global trade dynamics, and the impact of trade liberalization," Policy Research Working Paper Series 3226, The World Bank.
    11. Otsuka, Keijiro, 2000. "Role of agricultural research in poverty reduction: lessons from the Asian experience," Food Policy, Elsevier, vol. 25(4), pages 447-462, August.
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    Cited by:

    1. Muhammad Khan & Muhammad Khan & Khalid Zaman & Muhammad Khan, 2014. "The evolving role of agricultural technology indicators and economic growth in rural poverty: has the ideas machine broken down?," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2007-2022, July.
    2. Tanellari, Eftila & Kostandini, Genti & Bonabana-Wabbi, Jackline & Murray, Anthony, 2014. "Gender impacts on adoption of new technologies: the case of improved groundnut varieties in Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(4), December.
    3. Tanellari, Eftila & Kostandini, Genti & Bonabana-Wabbi, Jackline, 2013. "Gender Impacts on Adoption of New Technologies: Evidence from Uganda," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143204, Southern Agricultural Economics Association.
    4. Verkaart, Simone & Munyua, Bernard G. & Mausch, Kai & Michler, Jeffrey D., 2017. "Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?," Food Policy, Elsevier, vol. 66(C), pages 50-61.

    More about this item

    Keywords

    groundnuts technology; propensity score matching; poverty; Malawi; Research and Development/Tech Change/Emerging Technologies; C13; C15; O32; O38;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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