IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1424.html
   My bibliography  Save this paper

Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence:

Author

Listed:
  • Takeshima, Hiroyuki

Abstract

In order to distinguish the impacts of technology adoption at the extensive margin from those at the intensive margin, in the empirical analyses we tested these hypotheses focusing on the differences among marginal adopters of tractor hiring services and nonadopters of similar characteristics. The results are two-fold: (1) adoptions patterns of tractor services are partly explained by basic factor endowments, suggesting that the market for custom hiring is in some way functioning efficiently in response to economic conditions; (2) adoptions are, however, affected by supply-side factors including the presence of large farm households (and thus potential tractor owners) within the district, and (3) per capita household expenditure level differs significantly between the marginal adopters and nonadopters of similar characteristics. This difference seems to arise from the adoption per se, rather than the intensity of adoption, which is consistent with the hypothesis of the imperfection of the custom hiring market.

Suggested Citation

  • Takeshima, Hiroyuki, 2015. "Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence:," IFPRI discussion papers 1424, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1424
    as

    Download full text from publisher

    File URL: http://cdm15738.contentdm.oclc.org/utils/getfile/collection/p15738coll2/id/129069/filename/129280.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Olmstead, Alan L. & Rhode, Paul W., 2001. "Reshaping The Landscape: The Impact And Diffusion Of The Tractor In American Agriculture, 1910–1960," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 663-698, September.
    2. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    3. Takeshima, Hiroyuki & Jimah, Kipo & Kolavalli, Shashidhara & Diao, Xinshen & Funk, Rebecca Lee, 2013. "Dynamics of transformation: Insights from an exploratory review of rice farming in the Kpong irrigation project:," IFPRI discussion papers 1272, International Food Policy Research Institute (IFPRI).
    4. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    5. DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, WZB Berlin Social Science Center.
    6. Elias Papaioannou, 2014. "National Institutions and Subnational Development in Africa," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 151-213.
    7. World Bank, 2012. "Agribusiness Indicators," World Bank Publications - Reports 26224, The World Bank Group.
    8. Roumasset, James & Thapa, Ganesh, 1983. "Explaining tractorization in Nepal : An alternative to the consequences approach," Journal of Development Economics, Elsevier, vol. 12(3), pages 377-395, June.
    9. repec:oup:qjecon:v:129:y:2014:i:2:p:939-993. is not listed on IDEAS
    10. Takeshima, Hiroyuki & Edeh, Hyacinth & Lawal, Akeem & Isiaka, Moshud, 2014. "Tractor owner-operators in Nigeria: Insights from a small survey in Kaduna and Nasarawa states:," IFPRI discussion papers 1355, International Food Policy Research Institute (IFPRI).
    11. Gyimah-Brempong, Kwabena & Johnson, Michael E. & Takeshima, Hiroyuki, 2016. "The Nigerian rice economy: Policy options for transforming production, marketing, and trade: Synopsis," IFPRI synopses 9780896299726, International Food Policy Research Institute (IFPRI).
    12. Bektas, Tolga, 2006. "The multiple traveling salesman problem: an overview of formulations and solution procedures," Omega, Elsevier, vol. 34(3), pages 209-219, June.
    13. Lyle P. Fettig, 1963. "Adjusting Farm Tractor Prices for Quality Changes, 1950–1962," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(3), pages 599-611.
    14. Takeshima, Hiroyuki & Nagarajan, Latha, 2012. "Minor millets in Tamil Nadu, India: local market participation, on-farm diversity and farmer welfare," Environment and Development Economics, Cambridge University Press, vol. 17(5), pages 603-632, October.
    15. World Bank, 2012. "Agribusiness Indicators : Ghana," World Bank Publications - Reports 12893, The World Bank Group.
    16. World Bank, 2012. "Agribusiness Indicators," World Bank Publications - Reports 26562, The World Bank Group.
    17. Jin Yang & Zuhui Huang & Xiaobo Zhang & Thomas Reardon, 2013. "The Rapid Rise of Cross-Regional Agricultural Mechanization Services in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1245-1251.
    18. Hiroyuki Takeshima & Alex Winter-Nelson, 2012. "Sales location among semi-subsistence cassava farmers in Benin: a heteroskedastic double selection model," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 655-670, November.
    19. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
    20. Rodolfo E. Manuelli & Ananth Seshadri, 2014. "Frictionless Technology Diffusion: The Case of Tractors," American Economic Review, American Economic Association, vol. 104(4), pages 1368-1391, April.
    21. Pingali, Prabhu, 2007. "Agricultural Mechanization: Adoption Patterns and Economic Impact," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 54, pages 2779-2805, Elsevier.
    22. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    23. Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1.
    24. Takeshima, Hiroyuki, 2012. "Onset risk and draft animal investment in nigeria:," IFPRI discussion papers 1198, International Food Policy Research Institute (IFPRI).
    25. Clarke, Sally, 1991. "New Deal Regulation and the Revolution in American Farm Productivity. A Case Study of the Diffusion of the Tractor in the Corn Ielt, 1920–1940," The Journal of Economic History, Cambridge University Press, vol. 51(1), pages 101-123, March.
    26. Solon L. Barraclough & Arthur L. Domike, 1966. "Agrarian Structure in Seven Latin American Countries," Land Economics, University of Wisconsin Press, vol. 42(4), pages 391-424.
    27. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    28. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    29. Michela Bia & Alessandra Mattei, 2008. "A Stata package for the estimation of the dose–response function through adjustment for the generalized propensity score," Stata Journal, StataCorp LP, vol. 8(3), pages 354-373, September.
    30. Hiroyuki Takeshima & Futoshi Yamauchi, 2012. "Risks and farmers’ investment in productive assets in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 143-153, March.
    31. Hiroyuki Takeshima & Hyacinth O. Edeh & Akeem O. Lawal & Moshudi A. Isiaka, 2015. "Characteristics of Private-Sector Tractor Service Provisions: Insights from Nigeria," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 188-217, September.
    32. Gregory M. Perry & Ahmet Bayaner & Clair J. Nixon, 1990. "The Effect of Usage and Size on Tractor Depreciation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 317-325.
    33. Takeshima, Hiroyuki & Adeoti, Adetola I. & Okoli, Silas & Salau, Sheu & Rhoe, Valerie, 2010. "Demand characteristics for small-scale private irrigation technologies: Knowledge gaps in Nigeria," NSSP working papers 18, International Food Policy Research Institute (IFPRI).
    34. World Bank, 2012. "Agribusiness Indicators," World Bank Publications - Reports 26561, The World Bank Group.
    35. Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 939-993.
    36. Takeshima, Hiroyuki & Nin-Pratt, Alejandro & Diao, Xinshen, 2013. "Agricultural mechanization patterns in Nigeria: Insights from farm household typology and agricultural household model simulation:," IFPRI discussion papers 1291, International Food Policy Research Institute (IFPRI).
    37. World Bank, 2012. "Agribusiness Indicators," World Bank Publications - Reports 26563, The World Bank Group.
    38. Hayami, Yujiro & Ruttan, V W, 1970. "Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 1880-1960," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1115-1141, Sept.-Oct.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cossar, Frances, 2016. "Boserupian pressure and agricultural mechanization in modern Ghana:," IFPRI discussion papers 1528, International Food Policy Research Institute (IFPRI).
    2. Adesugba, Margaret Abiodun & Mavrotas, George, 2016. "Youth employment, agricultural transformation, and rural labor dynamics in Nigeria," IFPRI discussion papers 1579, International Food Policy Research Institute (IFPRI).
    3. Takeshima, Hiroyuki, 2015. "Drivers of growth in agricultural returns to scale: The hiring in of tractor services in the Terai of Nepal:," IFPRI discussion papers 1476, International Food Policy Research Institute (IFPRI).
    4. Hiroyuki Takeshima & Hyacinth O. Edeh & Akeem O. Lawal & Moshudi A. Isiaka, 2015. "Characteristics of Private-Sector Tractor Service Provisions: Insights from Nigeria," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 188-217, September.
    5. Frances Warren, 2023. "Population density, urbanisation and agricultural mechanisation in modern Ghana," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1605-1629, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Takeshima, Hiroyuki, 2015. "Identifying the effects of market imperfections for a scale biased agricultural technology: Tractors in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 211937, International Association of Agricultural Economists.
    2. Diao, Xinshen & Silver, Jed & Takeshima, Hiroyuki, 2016. "Agricultural mechanization and agricultural transformation:," IFPRI discussion papers 1527, International Food Policy Research Institute (IFPRI).
    3. Hiroyuki Takeshima & Rajendra Prasad Adhikari & Anjani Kumar, 2016. "Is Access to Tractor Service a Binding Constraint for Nepali Terai Farmers?," Working Papers id:9604, eSocialSciences.
    4. Houssou, Nazaire & Chapoto, Antony, 2014. "The changing landscape of agriculture in Ghana: Drivers of farm mechanization and its impacts on cropland expansion and intensification:," IFPRI discussion papers 1392, International Food Policy Research Institute (IFPRI).
    5. Takeshima, Hiroyuki & Hatzenbuehler, Patrick L. & Edeh, Hyacinth O., 2020. "Effects of agricultural mechanization on economies of scope in crop production in Nigeria," Agricultural Systems, Elsevier, vol. 177(C).
    6. Lutengano Mwinuka & Khamaldin Daud Mutabazi & Frieder Graef & Stefan Sieber & Jeremia Makindara & Anthony Kimaro & Götz Uckert, 2017. "Simulated willingness of farmers to adopt fertilizer micro-dosing and rainwater harvesting technologies in semi-arid and sub-humid farming systems in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1237-1253, December.
    7. Houssou, Nazaire & Kolavalli, Shashidhara & Silver, Jed, 2016. "Agricultural intensification, technology adoption, and institutions in Ghana," GSSP policy notes 10, International Food Policy Research Institute (IFPRI).
    8. Simone Santalucia & Kibrom T. Sibhatu, 2024. "Nourishing the farms, nourishing the plates: Association of climate‐smart agricultural practices with household dietary diversity and food security in smallholders," Agribusiness, John Wiley & Sons, Ltd., vol. 40(2), pages 513-533, April.
    9. Chen, Chaoran, 2020. "Technology adoption, capital deepening, and international productivity differences," Journal of Development Economics, Elsevier, vol. 143(C).
    10. Hiroyuki Takeshima & Hyacinth O. Edeh & Akeem O. Lawal & Moshudi A. Isiaka, 2015. "Characteristics of Private-Sector Tractor Service Provisions: Insights from Nigeria," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 188-217, September.
    11. Hiroyuki Takeshima, 2024. "Agricultural mechanisation and gendered labour activities across sectors: Micro‐evidence from multi‐country farm household data," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 425-456, February.
    12. Takeshima, Hiroyuki & Houssou, Nazaire & Diao, Xinshen, 2018. "Effects of tractor ownership on returns-to-scale in agriculture: Evidence from maize in Ghana," Food Policy, Elsevier, vol. 77(C), pages 33-49.
    13. Takeshima, Hiroyuki & Agandin, John & Kolavalli, Shashidhara, 2017. "Growth of modern service providers for the African agricultural sector: An insight from a public irrigation scheme in Ghana," IFPRI discussion papers 1678, International Food Policy Research Institute (IFPRI).
    14. Takeshima, Hiroyuki, 2015. "Drivers of growth in agricultural returns to scale: The hiring in of tractor services in the Terai of Nepal:," IFPRI discussion papers 1476, International Food Policy Research Institute (IFPRI).
    15. Paudel, Gokul P. & KC, Dilli Bahadur & Rahut, Dil Bahadur & Justice, Scott E. & McDonald, Andrew J., 2019. "Scale-appropriate mechanization impacts on productivity among smallholders: Evidence from rice systems in the mid-hills of Nepal," Land Use Policy, Elsevier, vol. 85(C), pages 104-113.
    16. Marmai, Nadine, 2016. "Farmers’ investments in innovative technologies in times of precipitation extremes: A statistical analysis for rural Tanzania," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201617, University of Turin.
    17. Shiferaw, Kaleb & GEBEREMEDHIN, Berhanu & LEGESSE, DEREJE, 2015. "What factors affect households’ decision to allocate credit for livestock production? Evidence from Ethiopia," MPRA Paper 69344, University Library of Munich, Germany.
    18. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using Evidence in Unraveling Food Supply Chains in Ethiopia: The Supply Chain of Teff from Major Production Areas to Addis Ababa," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 159706, African Association of Agricultural Economists (AAAE).
    19. Adu-Baffour, Ferdinand & Daum, Thomas & Birner, Regina, 2019. "Can small farms benefit from big companies’ initiatives to promote mechanization in Africa? A case study from Zambia," Food Policy, Elsevier, vol. 84(C), pages 133-145.
    20. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin & Li, Xiaoshun, 2020. "Land rental market and agricultural labor productivity in rural China: A mediation analysis," World Development, Elsevier, vol. 135(C).

    More about this item

    Keywords

    mechanization; Markets; productivity; Agricultural development; Mathematical models;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1424. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.