IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/13419.html
   My bibliography  Save this paper

The Value of Information in Technology Adoption: Theory and Evidence from Bangladesh

Author

Listed:
  • Islam, Asadul
  • Ushchev, Philip
  • Zenou, Yves
  • Zhang, Xin

Abstract

We develop a theoretical model in which adoption decisions are based on information received from others about the quality of a new technology and on their risk attitude. We test the predictions of this model using a field experiment in Bangladesh. We show that treated farmers who receive better training in System of Rice Intensification (SRI) technology have more accurate information about this technology, and have a higher impact on the adoption rate of untreated farmers. We also find that untreated farmers that are more risk-averse tend to adopt less and are less influenced by their treated peers. Finally, a trained farmers' impact on his untrained peers increases if he himself adopts SRI technology. Our results indicate that the crucial determinant of technology adoption for untreated farmers is their degree of risk aversion and the accuracy and reliability of information transmission about the quality of technology circulated among farmers.

Suggested Citation

  • Islam, Asadul & Ushchev, Philip & Zenou, Yves & Zhang, Xin, 2018. "The Value of Information in Technology Adoption: Theory and Evidence from Bangladesh," CEPR Discussion Papers 13419, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:13419
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13419
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
    2. Timothy Conley & Udry Christopher, 2001. "Social Learning Through Networks: The Adoption of New Agricultural Technologies in Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 668-673.
    3. Yating Chuang & Laura Schechter, 2015. "Social Networks in Developing Countries," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 451-472, October.
    4. Munshi, Kaivan, 2008. "Information Networks in Dynamic Agrarian Economies," Handbook of Development Economics, Elsevier.
    5. Bénédicte Apouey & Gabriel Picone, 2014. "Social Interactions And Malaria Preventive Behaviors In Sub‐Saharan Africa," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 994-1012, September.
    6. Fafchamps, Marcel & Islam, Asadul & Malek, Abdul & Pakrashi, Debayan, 2017. "Can Referral Improve Targeting? Evidence from a Vocational Training Experiment," CEPR Discussion Papers 12070, C.E.P.R. Discussion Papers.
    7. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    8. 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.
    9. Bénédicte H. Apouey & Gabriel Picone, 2014. "Social Interactions and Malaria Preventive Behaviors in Sub-Saharan Africa," Working Papers halshs-00940084, HAL.
    10. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    11. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    12. Amir K. Abadi Ghadim & David J. Pannell & Michael P. Burton, 2005. "Risk, uncertainty, and learning in adoption of a crop innovation," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 1-9, July.
    13. Stoop, Willem A. & Uphoff, Norman & Kassam, Amir, 2002. "A review of agricultural research issues raised by the system of rice intensification (SRI) from Madagascar: opportunities for improving farming systems for resource-poor farmers," Agricultural Systems, Elsevier, vol. 71(3), pages 249-274, March.
    14. Lori Beaman & Ariel BenYishay & Jeremy Magruder & Ahmed Mushfiq Mobarak, 2018. "Can Network Theory-based Targeting Increase Technology Adoption?," NBER Working Papers 24912, National Bureau of Economic Research, Inc.
    15. Christopher B. Barrett & Michael R. Carter & C. Peter Timmer, 2010. "A Century-Long Perspective on Agricultural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 447-468.
    16. Jacopo Bonan & Pietro Battiston & Jaimie Bleck & Philippe LeMay-Boucher & Stefano Pareglio & Bassirou Sarr & Massimo Tavoni, 2017. "Social Interaction and Technology Adoption: Experimental Evidence from Improved Cookstoves in Mali," Working Papers 2017.47, Fondazione Eni Enrico Mattei.
    17. Sinha, Shekhar Kumar & Talati, Jayesh, 2007. "Productivity impacts of the system of rice intensification (SRI): A case study in West Bengal, India," Agricultural Water Management, Elsevier, vol. 87(1), pages 55-60, January.
    18. Kazushi Takahashi & Christopher B. Barrett, 2014. "The System of Rice Intensification and its Impacts on Household Income and Child Schooling: Evidence from Rural Indonesia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 269-289.
    19. Christopher B. Barrett & Christine M. Moser & Oloro V. McHugh & Joeli Barison, 2004. "Better Technology, Better Plots, or Better Farmers? Identifying Changes in Productivity and Risk among Malagasy Rice Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 869-888.
    20. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    21. Abhijit Banerjee & Emily Breza & Arun G. Chandrasekhar & Benjamin Golub, 2018. "When Less is More: Experimental Evidence on Information Delivery During India's Demonetization," NBER Working Papers 24679, National Bureau of Economic Research, Inc.
    22. Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 657-670.
    23. Christine M. Moser & Christopher B. Barrett, 2006. "The complex dynamics of smallholder technology adoption: the case of SRI in Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 373-388, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    randomized controlled trial (RCT); risk attitude; Technology adoption;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    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:cpr:ceprdp:13419. 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: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    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.