Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia |
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Authors: | Solomon Asfaw Bekele Shiferaw Franklin Simtowe Leslie Lipper |
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Institution: | 1. FAO of the United Nations, Agricultural Development Economics Division (ESA), Viale delle Terme di Caracalla – 00153 Rome, Italy;2. International Maize and Wheat Improvement Centre (CIMMYT), UN Avenue, Gigiri P.O. Box 1041-00621 Nairobi, Kenya;3. International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), UN Avenue, Gigiri P.O. Box 39063-00623, Nairobi, Kenya |
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Abstract: | This paper evaluates the potential impact of adoption of improved legume technologies on rural household welfare measured by consumption expenditure in rural Ethiopia and Tanzania. The study utilizes cross-sectional farm household level data collected in 2008 from a randomly selected sample of 1313 households (700 in Ethiopia and 613 in Tanzania). The causal impact of technology adoption is estimated by utilizing endogenous switching regression. This helps us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Our analysis reveals that adoption of improved agricultural technologies has a significant positive impact consumption expenditure (in per adult equivalent terms) in rural Ethiopia and Tanzania. This confirms the potential role of technology adoption in improving rural household welfare as higher consumption expenditure from improved technologies translate into lower poverty, higher food security and greater ability to withstand risk. An analysis of the determinants of adoption highlighted inadequate local supply of seed, access to information and perception about the new cultivars as key constraints for technology adoption. |
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Keywords: | Household welfare Technology adoption Impact assessment Endogenous switching Sub-Saharan Africa Ethiopia Tanzania |
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