IDEAS home Printed from https://ideas.repec.org/p/ete/ceswps/634342.html
   My bibliography  Save this paper

Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab

Author

Listed:
  • Saule Burkitbayeva
  • Emma Janssen
  • Jo Swinnen

Abstract

The adoption of modern technologies in agriculture is crucial for improving the productivity and welfare of poor farmers in developing countries. Not much is known about how value chains do (not) affect technology transfer and/or adoption in domestic food chains in developing countries. Our paper analyzes farm-level technology adoption in the dairy chain in Punjab, India, combining quantitative panel data from representative surveys in 2008 and 2015 with data from targeted interviews with emerging modern dairy farms. Between 2008 and 2015 there were important increases in technology adoption in the form of better hygienic practices, better feed and improved livestock among traditional dairy farms. Especially those farms which lagged behind in 2008 improved their technology. However, the role of vertical coordination in value chains in stimulating technology adoption among these traditional dairy farmers seems to be minor. In contrast, we document the emergence of a group of dynamic modern dairy farms which are much larger, only use modern technology, and are fully integrated in vertically coordinated value chains which support these modern farms' management and investments.

Suggested Citation

  • Saule Burkitbayeva & Emma Janssen & Jo Swinnen, 2019. "Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab," Working Papers of Department of Economics, Leuven 634342, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:634342
    Note: paper number 410/2019
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/retrieve/532292
    File Function: Published version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    2. Bart Minten & Thomas Reardon, 2008. "Food Prices, Quality, and Quality's Pricing in Supermarkets versus Traditional Markets in Developing Countries ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 480-490.
    3. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    4. Christoph Saenger & Maximo Torero & Matin Qaim, 2014. "Impact of Third-party Contract Enforcement in Agricultural Markets-A Field Experiment in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1220-1238.
    5. Dries, Liesbeth & Germenji, Etleva & Noev, Nivelin & Swinnen, Johan F.M., 2009. "Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe," World Development, Elsevier, vol. 37(11), pages 1742-1758, November.
    6. 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.
    7. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    8. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    9. Abhijit V. Banerjee & Esther Duflo, 2014. "Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program," Review of Economic Studies, Oxford University Press, vol. 81(2), pages 572-607.
    10. Van Herck, Kristine & Swinnen, Johan F.M. & Deconinck, Koen, 2012. "How the East Was Won: Supply Chain Restructuring in the Eastern European Beer Market," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(04), pages 1-10, November.
    11. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
    12. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    13. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    14. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    15. Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, vol. 35(2), pages 121-129, April.
    16. Kumar, Anjani & Roy, Devesh & Joshi, Pramod K. & Tripathi, Gaurav & Adhikari, Rajendra P., 2016. "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235848, Agricultural and Applied Economics Association.
    17. Sam Jones & Peter Gibbon, 2011. "Developing Agricultural Markets in Sub-Saharan Africa: Organic Cocoa in Rural Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 47(10), pages 1595-1618.
    18. Subervie, Julie & Vagneron, Isabelle, 2013. "A Drop of Water in the Indian Ocean? The Impact of GlobalGap Certification on Lychee Farmers in Madagascar," World Development, Elsevier, vol. 50(C), pages 57-73.
    19. Bell, Clive & Srinivasan, T N, 1989. "Interlinked Transactions in Rural Markets: An Empirical Study of Andhra Pradesh, Bihar and Punjab," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(1), pages 73-83, February.
    20. Bart Minten & Seneshaw Tamru & Ermias Engida & Tadesse Kuma, 2016. "Transforming Staple Food Value Chains in Africa: The Case of Teff in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(5), pages 627-645, May.
    21. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
    22. Azeta Cungu & Hamish Gow & Johan F. M. Swinnen & Liesbet Vranken, 2008. "Investment with weak contract enforcement: evidence from Hungary during transition," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 75-91, March.
    23. Swinnen,Johan & Deconinck,Koen & Vandemoortele,Thijs & Vandeplas,Anneleen, 2015. "Quality Standards, Value Chains, and International Development," Cambridge Books, Cambridge University Press, number 9781107025912.
    24. Cunningham, Kenda, 2009. "Rural and urban linkages: Operation flood's role in India's dairy development," IFPRI discussion papers 924, International Food Policy Research Institute (IFPRI).
    25. Dina Umali‐Deininger & Mona Sur, 2007. "Food safety in a globalizing world: opportunities and challenges for India," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 135-147, December.
    26. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    27. Margarita Genius & Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2014. "Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and Spatial Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 328-344.
    28. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    29. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    30. Gow, Hamish R. & Streeter, Deborah H. & Swinnen, Johan F. M., 2000. "How private contract enforcement mechanisms can succeed where public institutions fail: the case of Juhocukor a.s," Agricultural Economics, Blackwell, vol. 23(3), pages 253-265, September.
    31. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    32. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    33. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    34. 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.
    35. Bitan Mondal, Bitan Mondal & Smita Sirohi, Smita Sirohi & Vishal Thorat, Vishal Thorat, 2012. "Impact of ASEAN-India Free Trade Agreement on Indian Dairy Trade: A Quantitative Approach," MPRA Paper 40790, University Library of Munich, Germany.
    36. 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.
    37. Van Herck, Kristine & Swinnen, Johan F.M. & Deconinck, Koen, 2012. "How the East Was Won: Supply Chain Restructuring in the Eastern European Beer Market," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(4).
    38. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
    39. Barrett,Christopher B. & Sheahan,Megan Britney & Barrett,Christopher B. & Sheahan,Megan Britney, 2014. "Understanding the agricultural input landscape in Sub-Saharan Africa : recent plot, household, and community-level evidence," Policy Research Working Paper Series 7014, The World Bank.
    40. Pratap S. Birthal & Ramesh Chand & P. K. Joshi & Raka Saxena & Pallavi Rajkhowa & Md. Tajuddin Khan & Mohd. Arshad Khan & Khyali R. Chaudhary, 2017. "Formal Versus Informal: Efficiency, Inclusiveness and Financing of Dairy Value Chains in Indian Punjab," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 57-87, Springer.
    41. Anneleen Vandeplas & Bart Minten & Johan Swinnen, 2013. "Multinationals vs. Cooperatives: The Income and Efficiency Effects of Supply Chain Governance in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 217-244, February.
    42. Birthal, Pratap S. & Chand, Ramesh & Joshi, Pramod Kumar & Saxena, Raka & Rajkhowa, Pallavi & Khan, Md. Tajuddin & Khan, Mohd Arshad & Chaudhary, Khyali R., 2016. "Formal versus informal: Efficiency, inclusiveness, and financing of dairy value chains in India:," IFPRI discussion papers 1513, International Food Policy Research Institute (IFPRI).
    43. Kumar, Anjani & Staal, Steven J. & Singh, Dhiraj Kumar, 2011. "Smallholder Dairy Farmers’ Access to Modern Milk Marketing Chains in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(2), December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mac Clay, Pablo & Sellare, Jorge, 2022. "Value chain transformations in the transition to a sustainable bioeconomy," Discussion Papers 323957, University of Bonn, Center for Development Research (ZEF).
    2. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
    3. Joachim Vandercasteelen & Bart Minten & Seneshaw Tamru, 2021. "Urban proximity, access to value chains, and dairy productivity in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 665-678, July.
    4. Liz Ignowski & Bart Minten & Johan Swinnen & Bjorn Van Campenhout & Senne Vandevelde, 2021. "Trade, Value Chain Technology and Prices: Evidence from Dairy in East Africa," LICOS Discussion Papers 42221, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    5. Chou, Lichen & Dai, Jie & Qian, Xiaoyan & Karimipour, Aliakbar & Zheng, Xuping, 2021. "Achieving sustainable soil and water protection: The perspective of agricultural water price regulation on environmental protection," Agricultural Water Management, Elsevier, vol. 245(C).
    6. Flavius Badau & Nicholas Rada, 2022. "Disequilibrium effects from misallocated markets: An application to agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 53(4), pages 592-604, July.
    7. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    8. Hongyu Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluations of the Roles of Organizational Support, Organizational Norms and Organizational Learning for Adopting Environmentally Friendly Technologies: A Case of Kiwifruit Farmers’ Cooperatives of Me," Land, MDPI, vol. 10(3), pages 1-23, March.
    9. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
    10. Huang, Weilun & Zhang, Qi, 2020. "Selecting the optimal economic crop in minority regions with the criteria about soil and water conservation," Agricultural Water Management, Elsevier, vol. 241(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    2. Janssen, Emma & Swinnen, Johan, 2019. "Technology adoption and value chains in developing countries: Evidence from dairy in India," Food Policy, Elsevier, vol. 83(C), pages 327-336.
    3. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    4. Johan Swinnen, 2016. "Value Chain Innovations for Technology Transfer in Developing and Emerging Economies: Concept, Typology and Policy Implications," Working Papers id:10694, eSocialSciences.
    5. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    6. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    7. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    8. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    9. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    10. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    11. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    12. Bonjean, Isabelle, 2019. "Heterogeneous incentives for innovation adoption: The price effect on segmented markets," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    13. Soullier, Guillaume & Moustier, Paule, 2018. "Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal," Food Policy, Elsevier, vol. 79(C), pages 179-198.
    14. Bonjean, Isabelle, 2018. "Heterogeneous Incentives to Innovation Adoption: the Price Effect on Segmented Market," Working Papers 279295, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    15. Delelegne A. Tefera & Jos Bijman, 2021. "Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    16. Sylvaine Lemeilleur, 2014. "The role of input vouchers in modernizing the fresh fruit and vegetable market in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 477-487, July.
    17. Bart Minten & Anneleen Vandeplas & Johan Swinnen, 2011. "Regulations, Brokers, and Interlinkages: The Institutional Organization of Wholesale Markets in India," Journal of Development Studies, Taylor & Francis Journals, vol. 48(7), pages 864-886, May.
    18. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    19. Kunte, Sebastian & Wollni, Meike & Keser, Claudia, 2014. "Making it personal: breach and private ordering in a contract farming experiment," GlobalFood Discussion Papers 186136, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    20. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.

    More about this item

    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:ete:ceswps:634342. 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://feb.kuleuven.be/Economics/ .

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://feb.kuleuven.be/Economics/ .

    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.