Strategic Decision-Making: Adoption of Agricultural Technologies and Risk in a Peasant Economy
Descriptive and logit analysis were employed to investigate the impact of social, economic and technical factors on decisions to adopt new agricultural technologies in the Ada and Selale districts of Ethiopia. Peasants follow sequential adoption of technologies. In both study areas, priority is given to adoption of crop production augmenting technologies followed by technologies that complement crop production (Ada) and contribute to increases in milk production (Selale). Producers of both regions require existence of certain pre-conditions prior to the adoption of technologies. Ada farmers require more pre-conditions related to livestock production while Selale farmers require more preconditions related crop production. The impact of indigenous production knowledge and experience on adoption decisions was found not only positive but greater than most economic and social variables. The influence of most socioeconomic variables is greater on technologies that are proven to have a more certain outcome (e.g., fertilizer and pesticides) than on technologies which are either expensive or risky (e.g., cross-bred cows and improved seed). Risk-averse behaviour of households reduces the probability of adopting new technologies in both study regions. Households may be willing to take more risks if they receive insurance from social networks, governmental and non-governmental organizations or are rich. The results from the Selale and Ada regions suggest that physical inputs and knowledge exert large and significant positive impacts on production when farmers adopt combinations of fertilizer and pesticides (Ada), or fertilizer and cross-bred cows (Selale).
|Date of creation:||12 Jun 1993|
|Date of revision:||10 Aug 1994|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 35(3), pages 643-644, April.
- Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:387. 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: (Joachim Winter)
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.