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The network at work: Diffusion of banana cultivation in Tanzania

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  • Anna Folke Larsen

    (Department of Economics, University of Copenhagen)

Abstract

This paper investigates the role of networks for diffusion of improved banana cultivation introduced by an agricultural project in Tanzania. In the existing literature on networks and technology adoption, network effects are interpreted as learning. I show that a farmer's network can affect the adoption of a new crop not only through social learning, but also by providing necessary inputs for adoption. I set up a simple model for adoption and derive similar model implications for the provision of either inputs or information through the network. Empirically, I find that a farmer is 37 percentage points more likely to adopt banana cultivation if there is at least one project participant growing bananas in the farmer's network. I use three falsication tests to support causal interpretation of the network effect on adoption. Provision of inputs (banana seedlings) through networks is found to play an important role for the network effects found.

Suggested Citation

  • Anna Folke Larsen, 2015. "The network at work: Diffusion of banana cultivation in Tanzania," CAM Working Papers camwp2015_01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  • Handle: RePEc:kud:kuieca:camwp2015_01
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    More about this item

    Keywords

    Technology adoption; networks; agriculture; Tanzania; Africa;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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