The Complex Dynamics of Smallholder Technology Adoption: The Case of Sri in Madagascar
Posted: 30 Sep 2003 Last revised: 13 Feb 2015
Date Written: June 1, 2003
This article explores the dynamics of smallholder technology adoption, with particular reference to a high-yielding, low external input rice production method in Madagascar. We present a simple model of technology adoption by farm households in an environment of incomplete financial and land markets. We then use a probit model and symmetrically censored least squares estimation of a dynamic tobit model to analyze the decisions to adopt, expand, and disadopt the method. We find that seasonal liquidity constraints discourage adoption by poorer farmers. Learning effects—both from extension agents and from other farmers—exert significant influence over adoption decisions.
Keywords: Technology adoption, learning, the System of Rice Intensification, conformity effects
JEL Classification: O0, Q0
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