Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?

Verkaart, S and Munyua, B G and Mausch, K and Michler, J D (2017) Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia? Food Policy, 66. pp. 50-61. ISSN 0306-9192

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We analyse the impact of improved chickpea adoption on welfare in Ethiopia using three rounds of panel data. First, we estimate the determinants of improved chickpea adoption using a double hurdle model. We apply a control function approach with correlated random effects to control for possible endogeneity resulting from access to improved seed and technology transfer activities. To instrument for these variables we develop novel distance weighted measures of a household’s neighbours’ access to improved seed and technology transfer activities. Second, we estimate the impact of area under improved chickpea cultivation on household income and poverty. We apply a fixed effects instrumental variables approach where we use the predicted area under cultivation from the double hurdle model as an instrument for observed area under cultivation. We find that improved chickpea adoption significantly increases household income while also reducing household poverty. Finally, we disaggregate results by landholding to explore whether the impact of adoption has heterogeneous effects. Adoption favoured all but the largest landholders, for who the new technology did not have a significant impact on income. Overall, increasing access to improved chickpea appears a promising pathway for rural development in Ethiopia’s chickpea growing regions.

Item Type: Article
Divisions: Research Program : East & Southern Africa
Uncontrolled Keywords: Improved chickpea; Technology adoption; Poverty; Control function; Ethiopia; Chickpea
Subjects: Mandate crops > Chickpea
Others > Rural Development
Others > African Agriculture
Others > Ethiopia
Depositing User: Mr Ramesh K
Date Deposited: 03 Apr 2017 03:34
Last Modified: 03 Apr 2017 03:34
URI: http://oar.icrisat.org/id/eprint/9936
Official URL: http://dx.doi.org/10.1016/j.foodpol.2016.11.007
Funders: Open Access funded by Bill & Melinda Gates Foundation
Acknowledgement: We are grateful to the Bill and Melinda Gates Foundation, ICRISAT and the Netherlands Junior Professional Officer (JPO) program for the financial support of this study. We thank the Debre Zeit Agricultural Research Center (DZARC) of the Ethiopian Institute of Agricultural Research (EIAR) for implementing the household surveys. Erwin Bulte, Kees Burger, Ken Giller and Anna Josephson provided useful comments on the paper. We are responsible for any remaining mistakes.
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