Market Imperfections and Farm Technology Adoption Decisions: A Case Study from the Highlands of Ethiopia
This paper investigates the impacts of market and institutional imperfections on technology adoption in a model that considers fertilizer use and soil conservation to be joint decisions. Controlling for plot characteristics and other factors, we found that a household’s decision to adopt fertilizer significantly and negatively depends on whether the same household adopts soil conservation. The reverse causality, however, was insignificant. We also found that outcomes of market imperfections, such as limited access to credit, plot size, risk considerations, and rates-of-time preference, were significant factors in explaining variations in farm technology adoption decisions. Relieving the existing market imperfections will most likely increase the adoption rate of farm technologies
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.:
- Scherr, Sara J. & Yadav, Satya N., 1996. "Land degradation in the developing world: implications for food, agriculture, and the environment to 2020," 2020 vision discussion papers 14, International Food Policy Research Institute (IFPRI).
- Just, Richard E. & Zilberman, David, 1988. "The effects of agricultural development policies on income distribution and technological change in agriculture," Journal of Development Economics, Elsevier, vol. 28(2), pages 193-216, March.
- Gebremedhin, Berhanu & Swinton, Scott M., 2003.
"Investment in soil conservation in northern Ethiopia: the role of land tenure security and public programs,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 29(1), July.
- Gebremedhin, Berhanu & Swinton, Scott M., 2003. "Investment in soil conservation in northern Ethiopia: the role of land tenure security and public programs," Agricultural Economics, Blackwell, vol. 29(1), pages 69-84, July.
- Gebremedhin, Berhanu & Swinton, Scott M., 2002. "Investment In Soil Conservation In Northern Ethiopia: The Role Of Land Tenure Security And Public Programs," Staff Papers 11749, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Shiferaw, Bekele & Holden, Stein, 1999. "Soil Erosion and Smallholders' Conservation Decisions in the Highlands of Ethiopia," World Development, Elsevier, vol. 27(4), pages 739-752, April.
- Pender, John L. & Kerr, John M., 1998.
"Determinants of farmers' indigenous soil and water conservation investments in semi-arid India,"
Blackwell, vol. 19(1-2), pages 113-125, September.
- Pender, John L. & Kerr, John M., 1998. "Determinants of farmers' indigenous soil and water conservation investments in semi -arid India," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
- Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
- 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 255-98, January.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Joseph Hayes & Michael Roth & Lydia Zepeda, 1997. "Tenure Security, Investment and Productivity in Gambian Agriculture: A Generalized Probit Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 369-382.
- Demeke, Mulat & Said, Ali & Jayne, Thomas S., 1997. "Promoting Fertilizer Use in Ethiopia: The Implications of Improving Grain Market Performance, Input Market Efficiency, and Farm Management," Food Security Collaborative Working Papers 55594, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Greene, W.H., 1996. "Marginal Effects in the Bivariate Probit Model," Working Papers 96-11, New York University, Leonard N. Stern School of Business, Department of Economics.
- Stein Holden & Hailu Yohannes, 2002.
"Land Redistribution, Tenure Insecurity, and Intensity of Production: A Study of Farm Households in Southern Ethiopia,"
University of Wisconsin Press, vol. 78(4), pages 573-590.
- Holden, Stein & Yohannes, Hailu, 2001. "Land redistribution, tenure insecurity, and intensity of production: a study of farm households in southern Ethiopia," CAPRi working papers 21, International Food Policy Research Institute (IFPRI).
- Godoy, R. & Kirby, K. & Wilkie, D., 2001. "Tenure security, private time preference, and use of natural resources among lowland Bolivian Amerindians," Ecological Economics, Elsevier, vol. 38(1), pages 105-118, July.
- Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
- Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August.
- Holden, Stein T. & Shiferaw, Bekele & Wik, Mette, 1998. "Poverty, market imperfections and time preferences: of relevance for environmental policy?," Environment and Development Economics, Cambridge University Press, vol. 3(01), pages 105-130, February.
When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-08-04-efd. 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: (Webmaster)
If references are entirely missing, you can add them using this form.