Credit constraints and agricultural technology adoption: Evidence from Nigeria

Credit constraints and agricultural technology adoption: Evidence from Nigeria PDF Author: Balana, Bedru
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 28

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Book Description
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.

Credit constraints and agricultural technology adoption: Evidence from Nigeria

Credit constraints and agricultural technology adoption: Evidence from Nigeria PDF Author: Balana, Bedru
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 28

Get Book Here

Book Description
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.

Credit Constraints as a Barrier to Technology Adoption by the Poor

Credit Constraints as a Barrier to Technology Adoption by the Poor PDF Author: Xavier Gine
Publisher: World Bank Publications
ISBN: 0507191358
Category : Credit
Languages : en
Pages : 40

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Book Description
"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? PDF Author: Alvi, Muzna
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 45

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Book Description
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.

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 PDF Author: Bizimungu, Emmanuel
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 32

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Book Description
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.

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 PDF Author: Miehe, Caroline
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 27

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Book Description
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.

SEAVEG 2012: High Value Vegetables in Southeast Asia: Production, Supply and Demand

SEAVEG 2012: High Value Vegetables in Southeast Asia: Production, Supply and Demand PDF Author: R. Holmer
Publisher: AVRDC-WorldVegetableCenter
ISBN: 9290582006
Category :
Languages : en
Pages : 400

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Book Description


Green Growth in South Asia

Green Growth in South Asia PDF Author: World Bank
Publisher: World Bank Publications
ISBN: 1464820260
Category : Business & Economics
Languages : en
Pages : 152

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Book Description
Notwithstanding global growth weakness and financial pressures, growth in South Asia is expected to remain robust, supported by slower fiscal consolidation than in other EMDEs, strong public investment, and a recovery as financial stress has subsided. Policy challenges include, in the short-term, preserving financial stability and restoring fiscal sustainability and, in the long-term, rekindling investment, and managing an energy transition. Currently, the energy intensity of South Asian economies is almost twice the global average—despite a decline over the past two decades that was almost entirely driven by firm-level, within-sector cuts in energy intensity. The potential benefit of regulatory policies, information interventions, and financial support to help accelerate the diffusion of these technologies, as well as the possibility that these could also lend broader support for countries' development objectives. The transition away from fossil fuels may have considerable labor market impacts. A wide range of policies, including better access to high-quality education, finance, and markets; improved labor mobility; and strengthened social safety nets, will be needed to facilitate the adjustment in labor markets while protecting vulnerable workers.

The Economics of Water Quality

The Economics of Water Quality PDF Author: Naomi Zeitouni
Publisher: Routledge
ISBN: 135189093X
Category : Nature
Languages : en
Pages : 620

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Book Description
This volume brings together a number of prominent economic studies all of which deal with key water quality issues. The studies focus on the economic aspects of water quality including identifying the polluters' actions and incentives, designing and comparing control mechanisms, analyzing the costs and benefits of water quality programmes, and finally managing transboundary water quality. They all make recommendations for improving water quality through changing incentives, programmes and/or policies.

Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies

Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies PDF Author: Ward, Patrick S.
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 34

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Book Description
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.

The Oxford Handbook of the Indian Economy

The Oxford Handbook of the Indian Economy PDF Author: Chetan Ghate
Publisher: OUP USA
ISBN: 0199734585
Category : Business & Economics
Languages : en
Pages : 973

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Book Description
India's remarkable economic growth in recent years has made it one of the fastest growing economies in the world. This Oxford Handbook reflects India's growing economic importance on the world stage, and features research on core topics by leading scholars to understand the Indian economic miracle and the obstacles India faces in transforming itself into a modern 21st-century economy.