Complementary technology adoption and smallholder commercialization: Panel data evidence from Ethiopia

IF 3.3 2区 经济学 Q2 AGRICULTURAL ECONOMICS & POLICY Applied Economic Perspectives and Policy Pub Date : 2024-05-23 DOI:10.1002/aepp.13439
Martin Paul Tabe-Ojong Jr., Abebayehu Girma Geffersa
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Abstract

Agricultural transformation involves the transition from subsistence agriculture marked by cultivating crops for auto-consumption to cultivating crops for output markets. This transition from subsistence agriculture to market-oriented agriculture can be a key policy boost to economic development, but evidence on the key entry points to increasing smallholder commercialization remains scarce. We examine the relationship between the adoption of improved maize varieties (IMVs), inorganic fertilizers, and smallholder commercialization. We model commercialization as a two-step decision process involving market participation and the extent of participation (sales quantity) conditional on participation. Given these two related steps, we estimate a double-hurdle model in both linear and non-linear forms. Employing a three-wave panel dataset from Ethiopia, we use the household fixed effects and correlated random effects model with the control function approach. We find the adoption of IMVs to be significantly associated with both market participation and the extent of participation. This relationship is also true for fertilizers, where we show a positive association between fertilizer use and commercialization. Given the seeming complementarity in the use of both IMVs and fertilizers, we further estimate their joint adoption. We use the multinomial endogenous switching regression model where we show greater commercialization gains under joint adoption. These findings are in line with a growing literature supporting the bundling of agricultural technologies. Given these insights, we provide empirical and policy support to the scaling of agricultural technologies as they have the potential to induce agricultural transformation by unlocking market opportunities.

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补充技术的采用与小农商业化:来自埃塞俄比亚的面板数据证据
农业转型是指从以种植作物供自给自足消费为特点的自给农业向种植作物供产出市场的过渡。从自给自足的农业向市场导向的农业过渡是促进经济发展的关键政策,但有关提高小农商业化程度的关键切入点的证据仍然很少。我们研究了改良玉米品种(IMV)、无机肥料的采用与小农商业化之间的关系。我们将商业化模拟为一个两步决策过程,涉及市场参与和以参与为条件的参与程度(销售量)。鉴于这两个相关步骤,我们估算了线性和非线性形式的双飓风模型。利用埃塞俄比亚的三波面板数据集,我们使用了家庭固定效应和相关随机效应模型以及控制函数方法。我们发现,IMV 的采用与市场参与和参与程度都有显著关联。在化肥方面也是如此,我们发现化肥使用与商业化之间存在正相关。鉴于 IMV 和化肥的使用似乎具有互补性,我们进一步估算了它们的联合采用情况。我们使用了多项式内生转换回归模型,结果表明在联合采用的情况下,商业化收益更大。这些发现与越来越多支持捆绑农业技术的文献相一致。鉴于这些见解,我们为农业技术的推广提供了经验和政策支持,因为这些技术有可能通过释放市场机会来促进农业转型。
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来源期刊
Applied Economic Perspectives and Policy
Applied Economic Perspectives and Policy AGRICULTURAL ECONOMICS & POLICY-
CiteScore
10.70
自引率
6.90%
发文量
117
审稿时长
>12 weeks
期刊介绍: Applied Economic Perspectives and Policy provides a forum to address contemporary and emerging policy issues within an economic framework that informs the decision-making and policy-making community. AEPP welcomes submissions related to the economics of public policy themes associated with agriculture; animal, plant, and human health; energy; environment; food and consumer behavior; international development; natural hazards; natural resources; population and migration; and regional and rural development.
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