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Factor Market Failures and the Adoption of Irrigation in Rwanda

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  • Maria Jones
  • Florence Kondylis
  • John Loeser
  • Jeremy Magruder

Abstract

We examine constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. We leverage a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 70%. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 21%. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.

Suggested Citation

  • Maria Jones & Florence Kondylis & John Loeser & Jeremy Magruder, 2020. "Factor Market Failures and the Adoption of Irrigation in Rwanda," NBER Working Papers 26698, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26698
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    5. Marcos A. Rangel & Duncan Thomas, 2019. "Decision-Making in Complex Households," Working Papers 2019-070, Human Capital and Economic Opportunity Working Group.
    6. Visser, Martine & le Roux, Leonard & Mulwa, Chalmers K. & Tibesigwa, Byela & Bezabih, Mintewab, 2024. "Adaptive investment with land tenure and weather risk: Behavioral evidence from Tanzania," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 398-434.
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    9. Blakeslee, David & Dar, Aaditya & Fishman, Ram & Malik, Samreen & Pellegrina, Heitor S. & Bagavathinathan, Karan Singh, 2023. "Irrigation and the spatial pattern of local economic development in India," Journal of Development Economics, Elsevier, vol. 161(C).
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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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