Technologies and Land Productivity: Evidence from Rural Ethiopia
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Date
2021-06
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A.A.U
Abstract
This study aims to examine the impact of agricultural technologies on land productivity in rural
Ethiopia by applying three econometric models namely: fixed effects (FE), quintile regres-
sion, and probit regression model were using the Ethiopian socio-economic survey of 2011/12,
2013/14 and 2015/16 data, collected by Central statistical Agency (CSA) in collaboration with
the World Bank. The panel fixed effect result shows that improved technologies have a positive
impact on land productivity except for pesticides. The author also estimates quintile regression
to see whether the same set of variables determine land productivity. The result indicates that
technologies such as fertilizer, improved seed, and fungicide were positive and significant in de-
termining land productivity. This implies that the adaption of these technologies improves land
productivity at least in the study area. So it is recommended to adopt these technologies to
increase land productivity. The policy package might also include crop rotation, health reform,
education, and labor intensiation. This study also measures vulnerability as the probability
that a households level of production falls below the appropriate production level in the future.
The probit model estimation result shows that vulnerability is higher among the low productive
and exhibited an inverse correlation with the adaption of technologies. The important policy
implication of this is that the current agricultural extension program and safety net program
could focus on the promotion of and support for the adaption of these improved technologies to
rescue rural farmers from vulnerability. There is a discrepancy between lower productive and
higher productive in terms of vulnerability when they adopt a given technology. Therefore, pol-
icymakers should take into account this heterogeneity to unleash the maximum possible benefit
of the technology practices.
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Keywords
Land Productivity, Rural Ethiopia, Technologies, Vulnerability