An optimization model for technology adoption of marginalized smallholders: Theoretical support for matching technological and institutional innovations
Deden Dinar Iskandar and
No 182495, Working Papers from University of Bonn, Center for Development Research (ZEF)
The rural poor are often marginalized and restricted from access to markets, public services and information, mainly due to poor connections to transport and communication infrastructure. Despite these unfavorable conditions, agricultural technology investments are believed to unleash unused human and natural capital potentials and alleviate poverty by productivity growth in agriculture. Based on the concept of marginality we develop a theoretical model which shows that these expectations for productivity growth are conditional on human and natural capital stocks and transaction costs. Our model categorizes the rural farm households below the poverty line into four segments according to labor and land endowments. Policy recommendations for segment and location specific investments are provided. Theoretical findings indicate that adjusting rural infrastructure and institutions to reduce transaction costs is a more preferable investment strategy than adjusting agricultural technologies to marginalized production conditions.
Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:ubonwp:182495
Access Statistics for this paper
More papers in Working Papers from University of Bonn, Center for Development Research (ZEF) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().