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Factor Market Failures and the Adoption of Irrigation in Rwanda

Author

Listed:
  • Jones,Maria Ruth
  • Kondylis,Florence
  • Loeser,John Ashton
  • Magruder,Jeremy

Abstract

This paper examines constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. It leverages a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 70 percent. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 21 percent. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.

Suggested Citation

  • Jones,Maria Ruth & Kondylis,Florence & Loeser,John Ashton & Magruder,Jeremy, 2019. "Factor Market Failures and the Adoption of Irrigation in Rwanda," Policy Research Working Paper Series 9092, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9092
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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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