Factor Market Failures and the Adoption of Irrigation in Rwanda

Maria Ruth Jones, Florence Kondylis, John Ashton Loeser and Jeremy Magruder

No 9092, Policy Research Working Paper Series from The World Bank

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.

Keywords: Hydrology; Labor Markets; Rural Labor Markets; Governance Diagnostic Capacity Building; Economic Forecasting; Macroeconomic Management; Climate Change and Agriculture; Crops and Crop Management Systems (search for similar items in EconPapers)
Date: 2019-12-18
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Factor Market Failures and the Adoption of Irrigation in Rwanda (2022)
Working Paper: Factor Market Failures and the Adoption of Irrigation in Rwanda (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9092

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