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Productivity and household welfare impact of technology adoption: Micro-level evidence from rural Ethiopia

Author

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  • Mekonnen, Tigist

    (UNU-MERIT, and Maastricht University)

Abstract
This study evaluates the potential impact of improved agricultural technologies on smallholders’ crop productivity and welfare. We use household-level data from Ethiopian Rural Household Survey collected by IFPRI in 1989-2009. The survey covers around 1500 rural households drawn from four regions and 15 rural villages. Endogenous treatment effect model is employed to account for the selection bias on households’ technology adoption decision. The study employs both single and multi-level treatment effect approaches which is unique and represents a departure from previous impact evaluation studies which relied on single treatment effects. Results of the analysis indicate that there is positive and significant effect of improved technology adoption on the rural households’ crop productivity and welfare in Ethiopia. Key factors for crop productivity and household welfare in the rural farm households are educational level, farm size, credit access, labor use, an extension program, expenditure for modern input and asset holding. While large household size negatively affects the welfare of households. For improving productivity, food security and welfare of smallholder farmers, policy priority should be an investment in research and development on major cereal crops adapted to local agroecological condition.

Suggested Citation

  • Mekonnen, Tigist, 2017. "Productivity and household welfare impact of technology adoption: Micro-level evidence from rural Ethiopia," MERIT Working Papers 2017-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2017007
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    2. Goundan, Anatole & Faye, Amy & Henning, Christian H. C. A. & Collins-Sowah, Peron A., 2020. "Investing in risky inputs in Senegal: Implications for farm profit and food production," Working Papers of Agricultural Policy WP2020-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
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    4. Tadesse Wudu Abate, 2024. "Analysis of agricultural technology adoption: the use of improved maize seeds and its determinants in Ethiopia, evidence from Eastern Amhara," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-19, December.

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    More about this item

    Keywords

    Agricultural intensification; agricultural innovation; innovations; impacts; productivity; welfare; endogenous treatment effect model;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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