Agro-clusters, market imperfections, and technology adoption in Ethiopia: exploring impacts and pathways
Guyo Godana Dureti and
Andu Nesrey Berha
No 365919, 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa from African Association of Agricultural Economists (AAAE)
Abstract:
Governments and development agencies in many developing countries have been promoting agro-cluster initiatives as a common avenue for promoting the adoption and diffusion of productivity-enhancing agricultural technologies. However, little is known about whether and under which conditions these agro-cluster schemes effectively promote the adoption of these inputs. Using a unique panel farm-household survey of about 5,000 smallholder farmers, we examine the impact of the agro-clusters on extensive and intensive adoption of agricultural technologies in Ethiopia. We employ a two-stage propensity score matching estimator using two broadly used matching algorithms, namely kernel and five-nearest neighbors matching methods. Our results suggest that the agro-cluster fosters both extensive and intensive adoption of modern agricultural inputs. We further undertake heterogeneity analysis to highlight the mechanism that enables agro-clusters to effectively promote the adoption of these inputs. The result shows that relaxing information and credit constraints may be the possible channels through which agro-clusters foster the adoption process. The findings also lend support to the widely held notion in development economics that households who are exposed to imperfect markets are unresponsive to government incentive schemes and opportunities to adopt new technologies. The findings provide strong evidence that the agro-cluster scheme may be a crucial policy instrument to promote the adoption of agricultural technologies with ensuing impacts on rural livelihoods and welfare.
Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Pages: 19
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
https://ageconsearch.umn.edu/record/365919/files/2 ... %20in%20Ethiopia.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae23:365919
DOI: 10.22004/ag.econ.365919
Access Statistics for this paper
More papers in 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa from African Association of Agricultural Economists (AAAE) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().