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Agricultural Technology Choice and Transport

Author

Listed:
  • Richard Damania
  • Claudia Berg
  • Jason Russ
  • A. Federico Barra
  • John Nash
  • Rubaba Ali

Abstract

This article seeks to address an old and recurring theme in development economics—the slow adoption of new technologies by farmers in many developing countries. We explore a somewhat novel explanation for this puzzle—the link between market access and the incentives to adopt a new technology when there are non-convexities. We develop a theoretical model to guide the empirical analysis that uses spatially disaggregated agricultural production data from the International Food Policy Research Institute and Living Standards Measurement Study survey data for Nigeria. We estimate the impact of transport costs on crop production, adoption of modern technologies, and the differential impact on returns of modern versus traditional farmers. To overcome the limitation of data availability on travel costs for much of Africa, we combine road survey data and GIS roads networks to generate the most thorough and accurate road network available, to our knowledge. Using these data and the Highway Development Management Model (HDM-4), we compute minimum travel costs from each location to the market. Consistent with our theory we find that transportation costs are critical in determining technology choices, with a greater responsiveness among farmers who adopt modern technologies, and at times a perverse (negative) response to lower transport costs among those who employ more traditional techniques. In sum, we present compelling evidence that the constraints to the adoption of modern technologies and access to markets are interconnected, and so should be targeted jointly.

Suggested Citation

  • Richard Damania & Claudia Berg & Jason Russ & A. Federico Barra & John Nash & Rubaba Ali, 2017. "Agricultural Technology Choice and Transport," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(1), pages 265-284.
  • Handle: RePEc:oup:ajagec:v:99:y:2017:i:1:p:265-284.
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    File URL: http://hdl.handle.net/10.1093/ajae/aav073
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    Citations

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    Cited by:

    1. Sibhatu, Kibrom T. & Steinhübel, Linda & Siregar, Hermanto & Qaim, Matin & Wollni, Meike, 2022. "Spatial heterogeneity in smallholder oil palm production," Forest Policy and Economics, Elsevier, vol. 139(C).
    2. Abate, Gashaw T. & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2020. "Geography of public service delivery in rural Ethiopia," World Development, Elsevier, vol. 136(C).
    3. Hatzenbuehler, Patrick L. & Mavrotas, George & Amare, Mulubrhan, 2023. "Differences in peri-urban and rural farm production decisions amid policy change in Nigeria," World Development Perspectives, Elsevier, vol. 32(C).
    4. Diao, Xinshen & Magalhaes, Eduardo & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana," World Development, Elsevier, vol. 121(C), pages 141-157.
    5. Atsushi Iimi, 2020. "Performance-Based Road Contracts in Zambia," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 107-129, August.
    6. Verena Preusse & Nils Nölke & Meike Wollni, 2024. "Urbanization and adoption of sustainable agricultural practices in the rural‐urban interface of Bangalore, India," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 167-198, June.
    7. Linda Steinhübel & Johannes Wegmann & Oliver Mußhoff, 2020. "Digging deep and running dry—the adoption of borewell technology in the face of climate change and urbanization," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 685-706, September.
    8. Joachim Vandercasteelen & Bart Minten & Seneshaw Tamru, 2021. "Urban proximity, access to value chains, and dairy productivity in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 665-678, July.
    9. Forhad Shilpi & M Shahe Emran & Brian Blankespoor & Harold Coulombe, 2024. "Temporary trade shocks and regional development: evidence from the closure of Abidjan port," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 333-352.
    10. Ben Brunckhorst, 2020. "Rural Mobility and Climate Vulnerability: Evidence from the 2015 Drought in Ethiopia," CSAE Working Paper Series 2020-17, Centre for the Study of African Economies, University of Oxford.
    11. Sibhatu, Kibrom T. & Steinhübel, Linda & Siregar, Hermanto & Qaim, Matin & Wollni, Meike, 2021. "Spatial Heterogeneity of Oil Palm Production in Indonesia: Implications for Intervention Strategies," 2021 Conference, August 17-31, 2021, Virtual 315222, International Association of Agricultural Economists.

    More about this item

    Keywords

    Africa; agriculture; Nigeria; technology choice; transport;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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