Technology Adoption Behavior Under Credit Constraint
Technology Adoption Behavior Under Credit Constraint

Author: Dadhi Adhikari

Publisher: LAP Lambert Academic Publishing

Published: 2010-08

Total Pages: 100

ISBN-13: 9783838393827

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Technology adoption in the agriculture sector is a key for the overall development of a least developed country like Nepal. Lack of credit is an important constraint to technology adoption. Extensive imperfections in credit market get in the way of technology adoption behavior of farm households of such countries. This study explores the effect of credit market imperfection in fertilizer adoption behavior of farm households of Nepal using Heckman s two step procedure. This has been analyzed first finding factors determining both credit constraint situation and credit demand decision, and secondly how the level of credit affect fertilizer market participation and intensity of fertilizer use using household survey data for 150 household from Banke district of Nepal. The study found that poverty defined in terms of land holding size increased the credit constraint situation and the credit constraint affected fertilizer use intensity negatively. Credit market participation was determined by family size while amount of credit was dependent on land holding size even if most of the households borrowed in through group lending.

Credit constraints and agricultural technology adoption: Evidence from Nigeria
Credit constraints and agricultural technology adoption: Evidence from Nigeria

Author: Balana, Bedru

Publisher: Intl Food Policy Res Inst

Published: 2020-08-19

Total Pages: 28

ISBN-13:

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The agricultural sector in Nigeria is characterized by low productivity that is driven by low use of modern agricultural technologies, such as improved seed, chemical fertilizer, agrochemicals, and agricultural machinery. Poor access to credit is claimed to be one of the key barriers to adoption of these technologies. This study examines the nature of credit constraints among smallholder farmers – whether smallholders are credit constrained or not and the extent to which credit constraints emanate from supply-side or demand-side factors. Using multinomial probit and seeming unrelated simultaneous equations econometric models with data from the 2018/19 Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) for Nigeria, the study investigates the factors affecting credit access and the effects of these credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. The results show that about 27 percent of survey households were found to be credit constrained – 12.8 percent due to supply-side factors and 14.2 percent due to demand-side factors. Lack of access to information and communication technology, extension services, and insurance coverage are the major demand-side factors negatively affecting smallholder’s access to credit. Registered land tiles and livestock ownership enhance credit access. Credit constraints manifests themselves differentially on the adoption of different agricultural technologies. While adoption of inorganic fertilizer and improved seed are significantly affected by credit constraints from both the supply and the demand-sides; use of agricultural machinery is affected only by demand-side factors, while use of agrochemicals is not affected from either supply or demand-side credit factors. From a policy perspective, our findings indicate that improving credit access via supply-side interventions alone may not necessarily boost use of modern agricultural technologies by smallholder farmers in Nigeria. Demand-side factors, such as access to information, extension services, and insurance cover, should equally be addressed to mitigate the credit constraints faced by smallholders and increase their adoption of modern agricultural technologies and improve their productivity.

Do credit constraints affect agricultural technology adoption? Evidence from Nigeria
Do credit constraints affect agricultural technology adoption? Evidence from Nigeria

Author: Balana, Bedru

Publisher: Intl Food Policy Res Inst

Published: 2020-09-08

Total Pages: 5

ISBN-13:

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The agricultural sector in Nigeria is characterized by low productivity that is driven in part by low use of modern agricultural technologies. Poor access to credit is seen by many observers to be one of the key barriers to adoption of these technologies. Literature suggests that credit constraints impede individuals from investing in productivity enhancing agricultural technologies and, thus, poor farmers are unable to engage in high-return agricultural activities. Much policy discourse and research literature associates agricultural credit constraints with supply-side factors, such as farmers not having access to credit sources or high costs of borrowing, and, thus, recommend that such supply-side constraints be addressed to improve smallholders’ access to credit. However, demand-side factors, such as borrower’s risk-averse behavior, financial illiteracy, collateral requirements, or perceived high transactions costs, can also play important roles in credit-rationing for smallholder farmers.

Credit Constraints as a Barrier to Technology Adoption by the Poor
Credit Constraints as a Barrier to Technology Adoption by the Poor

Author: Xavier Gine

Publisher: World Bank Publications

Published: 2005

Total Pages: 40

ISBN-13: 0507191358

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"It is generally recognized that the adoption of a new technology plays a fundamental role in the development process. However, the benefits from the introduction of the technology may be unevenly distributed among the population, especially if the markets do not function properly. While the microeconomic literature on technology adopted and diffusion focuses on "who" and "when," the macroeconomic literature has focused on the overall impact of globalization on inequality. In this paper the authors bring these two strands of the literature together by studying the diffusion of plastic reinforced fiber boats in a fishing village in Tamil Nadu and by analyzing the dynamics of income inequality during this process. " -- Cover verso.

Do grassroots interventions relax behavioral constraints to the adoption of nutrition-sensitive food production systems?
Do grassroots interventions relax behavioral constraints to the adoption of nutrition-sensitive food production systems?

Author: Alvi, Muzna

Publisher: Intl Food Policy Res Inst

Published: 2019-05-25

Total Pages: 45

ISBN-13:

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In many developing countries, agricultural policies and programs are often designed in a way to promote productivity growth with modern inputs and technologies, and with limited reference to the nutrition gains that can be made through production diversification. We test whether grassroots programs can relax behavioral constraints inhibiting the adoption of diversified nutrition-sensitive production systems. We use a series of lab-in-field experiments and survey instruments in Odisha, India to elicit male and female farmers’ preferences for risk, aversion to loss, empowerment and aspirations for one’s self and children. We find that respondents in villages where grassroots interventions were promoted showed significantly lower levels of risk aversion, higher levels of loss aversion and higher aspirations for themselves and their children, along with improvements in production and consumption diversity. Insights into the prevalence of behavioral constraints and interventions that relax such constraints fills an important knowledge gap in how to design programs that promote more nutrition-sensitive food production systems.

Trouble in the Making?
Trouble in the Making?

Author: Mary Hallward-Driemeier

Publisher: World Bank Publications

Published: 2017-10-12

Total Pages: 288

ISBN-13: 1464811938

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Technology and globalization are threatening manufacturing’s traditional ability to deliver both productivity and jobs at a large scale for unskilled workers. Concerns about widening inequality within and across countries are raising questions about whether interventions are needed and how effective they could be. Trouble in the Making? The Future of Manufacturing-Led Development addresses three questions: - How has the global manufacturing landscape changed and why does this matter for development opportunities? - How are emerging trends in technology and globalization likely to shape the feasibility and desirability of manufacturing-led development in the future? - If low wages are going to be less important in defining competitiveness, how can less industrialized countries make the most of new opportunities that shifting technologies and globalization patterns may bring? The book examines the impacts of new technologies (i.e., the Internet of Things, 3-D printing, and advanced robotics), rising international competition, and increased servicification on manufacturing productivity and employment. The aim is to inform policy choices for countries currently producing and for those seeking to enter new manufacturing markets. Increased polarization is a risk, but the book analyzes ways to go beyond focusing on potential disruptions to position workers, firms, and locations for new opportunities. www.worldbank.org/futureofmanufacturing

A Latent Class Analysis of Agro-technology Use Behavior in Uganda: Implications for Optimal Targeting
A Latent Class Analysis of Agro-technology Use Behavior in Uganda: Implications for Optimal Targeting

Author: Bizimungu, Emmanuel

Publisher: Intl Food Policy Res Inst

Published: 2018-01-27

Total Pages: 32

ISBN-13:

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This study uses a large dataset that covers a wide geographical and agricultural scope to describe the use patterns of improved agro-technology in Uganda. Using latent class analysis with data on more than 12,500 households across the four regions of Uganda, we classify farmers based on the package of improved agro-technologies they use. We find that the majority of farmers (61 percent) do not use any improved agricultural practices (the “nonusers”), whereas only 5 percent of farmers belong to the class of “intensified diversifiers,” those using most of the commonly available agro-technologies across crop and livestock enterprises. Using multinomial regression analysis, we show that education of the household head, access to extension messages, and affiliation with social groups are the key factors that drive switching from the nonuser (reference) class to the other three (preferred) classes that use improved agrotechnologies to varying degrees. Results reveal the existence of heterogeneous farmer categories, certainly with different agrotechnology needs, that may have implications for optimal targeting.

Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies
Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies

Author: Ward, Patrick S.

Publisher: Intl Food Policy Res Inst

Published:

Total Pages: 34

ISBN-13:

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Advances in agricultural development have largely been a direct result of increased usage of new technologies. Among other important factors, farmers’ perceptions of risks associated with the new technology as well as their ability or willingness to take risks greatly influences their adoption decisions. In this paper we conduct a series of field experiments in rural India in order to measure preferences related to risk, potential loss, and ambiguity. Disaggregating by gender, we find that on average women are significantly more risk averse and loss averse than men, though the higher average risk aversion arises due to a greater share of women who are extremely risk averse.

Can Mobile Technologies Enhance Productivity? A Structural Model and Evidence from Benin Food Suppliers
Can Mobile Technologies Enhance Productivity? A Structural Model and Evidence from Benin Food Suppliers

Author: Pierre Nguimkeu

Publisher: International Monetary Fund

Published: 2024-07-26

Total Pages: 42

ISBN-13:

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This paper analyzes the drivers of digital technologies adoption and how it affects the productivity of small scale businesses in Africa. We use data collected from two semi-rural markets in Benin, where grains and legumes are key staple foods and one-third of the population has internet access. We develop a structural model to rationalize digital technologies adoption—defined as the use of mobile broadband internet connection through smartphones—as well as usage patterns and outcomes observed in the data. The model’s implications are empirically tested using both reduced-form and structural maximum likelihood estimations. We find that younger, wealthier, more educated grains and legumes suppliers and those closely surrounded by other users are more likely to adopt digital technologies. Adopters perform 4-5 more business transactions each month than non-adopters on average, suggesting that digital technologies adoption could raise the monthly frequency and amounts of trades by up to 50%. Most adopters are women, but their productivity gains are lower than their male counterparts. Counterfactual policy simulations with the estimated model suggest that upgrading the broadband internet quality yields the largest improvement in adoption rate and productivity gains, while reducing its cost for a given connection quality only has a moderate effect. Improving access to credit only increases the adoption rate of constrained suppliers.

Miracle seeds: Biased expectations, complementary input use, and the dynamics of smallholder technology adoption
Miracle seeds: Biased expectations, complementary input use, and the dynamics of smallholder technology adoption

Author: Miehe, Caroline

Publisher: Intl Food Policy Res Inst

Published: 2023-05-11

Total Pages: 27

ISBN-13:

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To fully benefit from new agricultural technologies like improved seed varieties, significant investment in complementary inputs such as fertilizers and pesticides, and practices such as systematic planting, irrigation, and weeding are also required. Farmers may fail to recognize the importance of these complements, leading to unsatisfactory crop yields and outputs and, eventually, dis-adoption of the variety. We provide a simple model of biased expectations, complementary input use and technology adoption and test its predictions using a field experiment among smallholder maize farmers in eastern Uganda. We find that pointing out the importance of complementary investments using a short, engaging video effectively deters some farmers from using commercial improved varieties. Consistent with the theoretical model, we find some evidence that this behavior change emanates from increased knowledge and expectations that are more in line with realized outcomes.