Template-type: ReDif-Paper 1.0 
Author-Name: Mekonnen, Tigist
Author-Email: mekonnen@merit.unu.edu
Author-workplace-name: UNU-MERIT, and Maastricht University
Title: Impact of agricultural technology adoption on market participation in the rural 
	 social network system
Abstract: This paper provides empirical evidence regarding the impact of 
	 agricultural technologies on smallholders’ output market participation. 
	 The analysis is based on Farmer Innovation Fund impact evaluation survey 
	 collected by the World Bank in 2010-2012 covering 2,675 households in 
	 Ethiopia. Endogenous treatment effect and sample selection models are 
	 employed to account for the self-selection bias in technology adoption 
	 and market participation. Regressions based on matching techniques are 
	 employed for robustness check. The estimation results show that the use 
	 of improved agricultural inputs significantly affects farm households 
	 marketable surplus production. We found evidence that application of 
	 high-yielding varieties increases surplus crop production by 7.39 
	 percent per year, whereas chemical fertilizer use increases surplus by 
	 2.32 percent. When farmers apply the two inputs jointly, marketed 
	 surplus increases by 6 percent which establish the complementarity of 
	 the two technologies. Marketable surplus crop production and market 
	 participation of farmers are determined by access to modern inputs, crop 
	 price, farm size, availability of labor, and infrastructure. Access to 
	 credit and training fosters technology adoption. Therefore, agriculture 
	 and rural development policy need to focus on supporting agricultural 
	 technology adoption. 
Keywords: Surplus production, technologies, social network, Ethiopia, agricultural
	 innovation,endogenous treatment effect model 
Classification-JEL: D04, o12, O13, O33, Q13
Series: UNU-MERIT Working Papers
Creation-Date: 20170206
Number: 2017-008
File-URL: https://unu-merit.nl/publications/wppdf/2017/wp2017-008.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2017008