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Market imperfections and farm Technology adoption Decisions


In this paper, we investigate the impacts of market and institutional imperfections on technology adoption in a model that considers decisions of fertilizer and soil conservation adoption as joint decisions. Controlling for plot characteristics and other factors, we found that a household's decision to adopt fertilizer does significantly and negatively depend on whether the same household adopts soil conservation. The reverse causality, however, is insignificant. We also find outcomes of market imperfections such as limited access to credit, plot size, risk considerations, and rates of time preference as significant factors explaining variations in farm technology adoption decisions. Relieving the existing market imperfections will more likely increase the adoption rate of farm technologies.

Corporate Author: 
Getnet Alemu & []. & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Bivariate probit, fertilizer adoption,

Secondary Descriptor: 

risk aversion, time preferences, soil conservation

Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
market imperfections
Call Number: 
330.963 PRO 2006
Serial Key Title: 
Proceedings of the Third International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:06:00
Forum or Discussion date: 
2013-02-27 15:02:03
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: