Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders

The future of smallholders in developing countries is becoming increasingly uncertain in the face of rising farm wages. The custom‐hiring of tractors, in which tractor owners provide non‐owner farmers with land preparation and transport services for fees, has spread among smallholders in Asia, inclu...

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Main Author: Takeshima, Hiroyuki
Format: Journal Article
Language:Inglés
Published: Wiley 2018
Subjects:
Online Access:https://hdl.handle.net/10568/145419
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author Takeshima, Hiroyuki
author_browse Takeshima, Hiroyuki
author_facet Takeshima, Hiroyuki
author_sort Takeshima, Hiroyuki
collection Repository of Agricultural Research Outputs (CGSpace)
description The future of smallholders in developing countries is becoming increasingly uncertain in the face of rising farm wages. The custom‐hiring of tractors, in which tractor owners provide non‐owner farmers with land preparation and transport services for fees, has spread among smallholders in Asia, including Nepal. However, estimating the adoption impacts of agricultural mechanization by smallholders is complex as we must also take into account smallholders’ options to exit farming. We investigate this issue by applying multinomial logit inverse‐probability weighting and sample selection panel data methods to data on smallholders in lowland Nepal. Our results are generally consistent with the hypothesis that smallholders who are likely to benefit more from adopting tractors are also more likely to exit farming. Where smallholders are less likely to exit farming, the use of tractors through custom‐hiring may help smallholders on average to earn greater total and agricultural incomes. However, where they are more likely to exit farming, the ability of custom‐hired tractors to sustain smallholder farming systems may become weaker. The results also offer insights into how the external validity of technology adoption impact evaluation may be affected in some settings.
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spelling CGSpace1454192025-12-08T10:29:22Z Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders Takeshima, Hiroyuki tractors rent agriculture smallholders innovation adoption agricultural mechanization mechanization The future of smallholders in developing countries is becoming increasingly uncertain in the face of rising farm wages. The custom‐hiring of tractors, in which tractor owners provide non‐owner farmers with land preparation and transport services for fees, has spread among smallholders in Asia, including Nepal. However, estimating the adoption impacts of agricultural mechanization by smallholders is complex as we must also take into account smallholders’ options to exit farming. We investigate this issue by applying multinomial logit inverse‐probability weighting and sample selection panel data methods to data on smallholders in lowland Nepal. Our results are generally consistent with the hypothesis that smallholders who are likely to benefit more from adopting tractors are also more likely to exit farming. Where smallholders are less likely to exit farming, the use of tractors through custom‐hiring may help smallholders on average to earn greater total and agricultural incomes. However, where they are more likely to exit farming, the ability of custom‐hired tractors to sustain smallholder farming systems may become weaker. The results also offer insights into how the external validity of technology adoption impact evaluation may be affected in some settings. 2018-06-20 2024-06-21T09:04:28Z 2024-06-21T09:04:28Z Journal Article https://hdl.handle.net/10568/145419 en https://doi.org/10.2499/p15738coll2.133757 Limited Access Wiley Takeshima, H. 2018. Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders. Review of Development Economics 22(4): 1620-1641. https://doi.org/10.1111/rode.12407
spellingShingle tractors
rent
agriculture
smallholders
innovation adoption
agricultural mechanization
mechanization
Takeshima, Hiroyuki
Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title_full Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title_fullStr Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title_full_unstemmed Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title_short Mechanize or exit farming? Multiple‐treatment‐effects model and external validity of adoption impacts of mechanization among Nepalese smallholders
title_sort mechanize or exit farming multiple treatment effects model and external validity of adoption impacts of mechanization among nepalese smallholders
topic tractors
rent
agriculture
smallholders
innovation adoption
agricultural mechanization
mechanization
url https://hdl.handle.net/10568/145419
work_keys_str_mv AT takeshimahiroyuki mechanizeorexitfarmingmultipletreatmenteffectsmodelandexternalvalidityofadoptionimpactsofmechanizationamongnepalesesmallholders