Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence
In Nigeria, despite the scarcity of tractors, average horsepower and prices of tractors appear high. These patterns are different from the experiences in other parts of the world where initially tractor horsepower was often smaller, such as Asia, or farmers were better endowed with land and wealth,...
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2016
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| Online Access: | https://hdl.handle.net/10568/147993 |
| _version_ | 1855521866122264576 |
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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 | In Nigeria, despite the scarcity of tractors, average horsepower and prices of tractors appear high. These patterns are different from the experiences in other parts of the world where initially tractor horsepower was often smaller, such as Asia, or farmers were better endowed with land and wealth, such as Latin America. In Nigeria, joint ownership of tractors is rare, and formal loans are often unavailable due to high transactions costs. IFPRI’s survey in Kaduna and Nasarawa states in 2013 suggested that the spatial mobility of tractors is generally low and the use of tractors is highly seasonal. There do not seem to be plausible explanations for the seeming dominance of large tractor use based on available information on prices and soils. Nevertheless, these patterns seem driven by the own initiative of the private sector rather than by government policies. Indivisibility of large tractors and limited mobility of supplies may cause imperfections in the custom tractor hiring market. In order to distinguish the impacts of technology adoption at the extensive margin from those at the intensive margin, in the empirical analyses for the research presented here we tested these hypotheses focusing on the differences among marginal adopters of tractor hiring services and non-adopters with similar characteristics. The results are three-fold: (1) adoptions patterns of tractor services are partly explained by basic factor endowments, suggesting that the market for custom hiring is in some way functioning efficiently in response to economic conditions; (2) adoptions are, however, affected by supply-side factors, including the presence of large farm households (and thus potential tractor owners) within the district, and (3) per capita household expenditure level differs significantly between the marginal adopters and non-adopters with similar characteristics. This difference seems to arise from adoption per se, rather than the intensity of adoption, which is consistent with the hypothesis of imperfection in the custom tractor hiring market. |
| format | Artículo preliminar |
| id | CGSpace147993 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1479932025-11-06T05:52:44Z Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence Takeshima, Hiroyuki models tractors market disruption markets propensity score matching mechanization In Nigeria, despite the scarcity of tractors, average horsepower and prices of tractors appear high. These patterns are different from the experiences in other parts of the world where initially tractor horsepower was often smaller, such as Asia, or farmers were better endowed with land and wealth, such as Latin America. In Nigeria, joint ownership of tractors is rare, and formal loans are often unavailable due to high transactions costs. IFPRI’s survey in Kaduna and Nasarawa states in 2013 suggested that the spatial mobility of tractors is generally low and the use of tractors is highly seasonal. There do not seem to be plausible explanations for the seeming dominance of large tractor use based on available information on prices and soils. Nevertheless, these patterns seem driven by the own initiative of the private sector rather than by government policies. Indivisibility of large tractors and limited mobility of supplies may cause imperfections in the custom tractor hiring market. In order to distinguish the impacts of technology adoption at the extensive margin from those at the intensive margin, in the empirical analyses for the research presented here we tested these hypotheses focusing on the differences among marginal adopters of tractor hiring services and non-adopters with similar characteristics. The results are three-fold: (1) adoptions patterns of tractor services are partly explained by basic factor endowments, suggesting that the market for custom hiring is in some way functioning efficiently in response to economic conditions; (2) adoptions are, however, affected by supply-side factors, including the presence of large farm households (and thus potential tractor owners) within the district, and (3) per capita household expenditure level differs significantly between the marginal adopters and non-adopters with similar characteristics. This difference seems to arise from adoption per se, rather than the intensity of adoption, which is consistent with the hypothesis of imperfection in the custom tractor hiring market. 2016-07-01 2024-06-21T09:23:38Z 2024-06-21T09:23:38Z Working Paper https://hdl.handle.net/10568/147993 en https://hdl.handle.net/10568/149815 Open Access application/pdf International Food Policy Research Institute Takeshima, Hiroyuki. 2016. Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence. NSSP Working Paper 32. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147993 |
| spellingShingle | models tractors market disruption markets propensity score matching mechanization Takeshima, Hiroyuki Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title | Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title_full | Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title_fullStr | Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title_full_unstemmed | Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title_short | Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence |
| title_sort | market imperfections for tractor service provision in nigeria international perspectives and empirical evidence |
| topic | models tractors market disruption markets propensity score matching mechanization |
| url | https://hdl.handle.net/10568/147993 |
| work_keys_str_mv | AT takeshimahiroyuki marketimperfectionsfortractorserviceprovisioninnigeriainternationalperspectivesandempiricalevidence |