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Adoption and Impact of Improved Groundnut Varieties on Rural Poverty: Evidence from Rural Uganda

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  • Kassie, Menale
  • Shiferaw, Bekele
  • Muricho, Geoffrey

Abstract

This paper evaluates the ex-post impact of adopting improved groundnut varieties on crop income and rural poverty in rural Uganda. The study utilizes cross-sectional farm household data collected in 2006 in seven districts of Uganda. We estimated the average adoption premium using propensity score matching (PSM), poverty dominance analysis tests, and a linear regression model to check robustness of results. Poverty dominance analysis tests and linear regression estimates are based on matched observations of adopters and non-adopters obtained from the PSM. This helped us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Furthermore, we checked covariate balancing with a standardized bias measure and sensitivity of the estimated adoption effect to unobserved selection bias, using the Rosenbaum bounds procedure. The paper computes income-based poverty measures and investigates their sensitivity to the use of different poverty lines. We found that adoption of improved groundnut technologies has a significant positive impact on crop income and poverty reduction. These results are not sensitive to unobserved selection bias; therefore, we can be confident that the estimated adoption effect indicates a pure effect of improved groundnut technology adoption.

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  • Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2010. "Adoption and Impact of Improved Groundnut Varieties on Rural Poverty: Evidence from Rural Uganda," RFF Working Paper Series dp-10-11-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-10-11-efd
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    2. Million Sileshi & Reuben Kadigi & Khamaldin Mutabazi & Stefan Sieber, 2019. "Impact of soil and water conservation practices on household vulnerability to food insecurity in eastern Ethiopia: endogenous switching regression and propensity score matching approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 797-815, August.
    3. Santi Sanglestsawai & Roderick M. Rejesus & Jose M. Yorobe Jr., 2015. "Economic impacts of integrated pest management (IPM) farmer field schools (FFS): evidence from onion farmers in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 149-162, March.
    4. Kumar, K. Nirmal Ravi & Reddy, M. Jagan Mohan & Shafiwu, Adinan Bahahudeen & Reddy, A. Amaraendar, 2023. "Impact of Farmer Producer Organizations on Price and Poverty Alleviation of Smallholder Dry Chillies Farmers in India," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(3), August.
    5. Nazli, Hina & Orden, David & Sarker, Rakhal & Meilke, Karl D., 2012. "Bt Cotton Adoption and Wellbeing of Farmers in Pakistan," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126172, International Association of Agricultural Economists.
    6. Chakraborty, Sanjana & Mukherjee, Vivekananda, 2020. "Revisiting the Economic Costs of Arsenicosis: A PSM Approach," Ecology, Economy and Society - the INSEE Journal, Indian Society of Ecological Economics (INSEE), vol. 3(02), July.
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    8. Martey, Edward & Kuwornu, John K.M. & Adjebeng-Danquah, Joseph, 2019. "Estimating the effect of mineral fertilizer use on Land productivity and income: Evidence from Ghana," Land Use Policy, Elsevier, vol. 85(C), pages 463-475.
    9. Kiiza, Barnabas & Pederson, Glenn, 2012. "ICT-based market information and adoption of agricultural seed technologies: Insights from Uganda," Telecommunications Policy, Elsevier, vol. 36(4), pages 253-259.
    10. Dambala Gelo & Steven F. Koch, 2012. "Welfare and common property rights forestry: Evidence from Ethiopian villages," Working Papers 277, Economic Research Southern Africa.
    11. Bortamuly, Alin Borah & Goswami, Kishor, 2015. "Determinants of the adoption of modern technology in the handloom industry in Assam," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 400-409.
    12. Dambala Gelo & Steven F. Koch, 2011. "The Welfare Effect of Common Property Forestry Rights:Evidence from Ethiopian Villages," Working Papers 201123, University of Pretoria, Department of Economics.
    13. Ibrahim, Mohammed & Florkowski, Wojciech J. & Kolavalli, Shashidhara, 2012. "Determinants of Farmer Adoption of Improved Peanut Varieties and their Impact on Farm Income: Evidence from Northern Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125000, Agricultural and Applied Economics Association.
    14. Hanan Ali Alrteimei & Zulfa Hanan Ash’aari & Farrah Melissa Muharram, 2022. "Last Decade Assessment of the Impacts of Regional Climate Change on Crop Yield Variations in the Mediterranean Region," Agriculture, MDPI, vol. 12(11), pages 1-21, October.
    15. Harris, David & Orr, Alastair, 2014. "Is rainfed agriculture really a pathway from poverty?," Agricultural Systems, Elsevier, vol. 123(C), pages 84-96.
    16. Mausch, Kai & Chiwaula, L. & Irshad, A. & Bantilan, Ma Cynthia S. & Silim, S. & Siambi, M., 2013. "Strategic Breeding Investments for Legume Expansion: Lessons Learned from the Comparison of Groundnut and Pigeonpea," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152168, Australian Agricultural and Resource Economics Society.
    17. Acheampong, Patricia & Owusu, Victor, 2015. "Impact of Improved cassava varieties' adoption on farmers' incomes in Rural Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 210875, International Association of Agricultural Economists.
    18. Akua S. Akuffo & Kwamena K. Quagrainie, 2019. "Assessment of Household Food Security in Fish Farming Communities in Ghana," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    19. Asante, Bright Owusu & Adabah, Richard & Agyeman, Kennedy & Ayeh, Stephen John & Aidoo, Robert & Afona, Daniel, 2021. "Preference for improved varietal attributes of Bambara groundnut among smallholder farmers in Ghana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(2), June.

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    More about this item

    Keywords

    groundnut technology adoption; crop income; poverty alleviation; propensity score matching; switching regression; stochastic dominance; Rosenbaum bounds; Uganda;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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