Khushbu Mishra, Richard A. Gallenstein, Abdoul G. Sam, Mario J. Miranda, Patricia Toledo, Francis Mulangu
{"title":"Does bundling credit with index insurance boost agricultural technology adoption? Evidence from Ghana","authors":"Khushbu Mishra, Richard A. Gallenstein, Abdoul G. Sam, Mario J. Miranda, Patricia Toledo, Francis Mulangu","doi":"10.1111/agec.12806","DOIUrl":null,"url":null,"abstract":"<p>The adoption of advanced agricultural technologies in Sub-Saharan Africa remains disappointingly low, particularly among the millions of poor smallholders who account for most of the agricultural production. We conducted a randomized control trial in Ghana to assess the impact of easing drought-risk constraints in the agricultural credit market, by bundling joint liability agricultural loans with index insurance, on smallholder farmers’ agricultural technology adoption decisions. In the micro-insurance treatment, any index insurance payouts go directly to farmers, while in the meso-insurance treatment, payouts are issued to banks to be used to expunge farmers’ debts. We find evidence that bundling joint liability lending with micro-insurance increases adoption of fertilizer.</p>","PeriodicalId":50837,"journal":{"name":"Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":4.5000,"publicationDate":"2023-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agricultural Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/agec.12806","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
The adoption of advanced agricultural technologies in Sub-Saharan Africa remains disappointingly low, particularly among the millions of poor smallholders who account for most of the agricultural production. We conducted a randomized control trial in Ghana to assess the impact of easing drought-risk constraints in the agricultural credit market, by bundling joint liability agricultural loans with index insurance, on smallholder farmers’ agricultural technology adoption decisions. In the micro-insurance treatment, any index insurance payouts go directly to farmers, while in the meso-insurance treatment, payouts are issued to banks to be used to expunge farmers’ debts. We find evidence that bundling joint liability lending with micro-insurance increases adoption of fertilizer.
期刊介绍:
Agricultural Economics aims to disseminate the most important research results and policy analyses in our discipline, from all regions of the world. Topical coverage ranges from consumption and nutrition to land use and the environment, at every scale of analysis from households to markets and the macro-economy. Applicable methodologies include econometric estimation and statistical hypothesis testing, optimization and simulation models, descriptive reviews and policy analyses. We particularly encourage submission of empirical work that can be replicated and tested by others.