MARATTO

article · Cogent Economics & Finance

Impact of Agricultural Technology Adoption on Food Consumption Expenditure: Evidence from Rural Amhara Region, Ethiopia

202236 citationsOpen accessDebre Berhan University

In plain language

Agricultural technology adoption plays a measurable role in enhancing living standards for farming communities in rural Ethiopia. An investigation using survey data from 656 rural farm households across the Amhara regional state evaluated how the uptake of these technologies influences annual food consumption expenditure per adult equivalent. By employing an endogenous switching regression model, the research accounted for potential biases to compare actual outcomes with counterfactual scenarios. The analysis demonstrates that households adopting agricultural technologies achieve significantly higher food consumption expenditures compared to non-adopters. The observed disparity between actual uptake and counterfactual conditions proves substantial. Consequently, expanding investment in agricultural innovations and broadening farmer access to these tools directly improves rural household welfare and living conditions.

Key takeaways

  • Adopting agricultural technology significantly increases household food consumption expenditure per adult equivalent in rural Amhara, Ethiopia.
  • The difference in food consumption expenditure between actual adoption and counterfactual non-adoption scenarios is very high.
  • Broader investment in agricultural technologies leads to measurable improvements in farm household welfare.
  • Increasing farmer access to and adoption of agricultural tools serves as an effective mechanism to bolster rural welfare.

Why it matters

Improving rural living standards remains central to economic development and food security across sub-Saharan Africa. By demonstrating a strong positive link between technology uptake and higher food consumption expenditure, this research confirms that farming innovations directly bolster household welfare. These findings offer practical guidance for policymakers, development agencies, and agricultural programmes seeking evidence to justify expanding farm-level access to new technologies.

Commercialisation angle

The findings provide evidence that rural smallholders benefit materially from agricultural innovations, indicating a receptive end-user base for agricultural technology providers and extension programmes. However, because the abstract evaluates technology adoption broadly without detailing specific devices, software, or inputs, it does not indicate an explicit commercialisation pathway or technology readiness level for individual products.

AI-generated from the published abstract. Always read the original work before citing.

Abstract

The purpose of this study is to examine the impact of agricultural technology adoption on household food consumption expenditure in rural Amhara regional state, Ethiopia. The study is based on the data obtained from the Ethiopian Socioeconomic Survey collected in 2015/16. Household-level data were taken from 656 rural farm households in the Amhara region of Ethiopia. The study used the endogenous switching regression model to estimate the impacts of agricultural technology adoption on household food consumption expenditure per adult equivalent per annum. The result of the study reveals that adopting agricultural technology significantly increases household food consumption expenditure per adult equivalent. Moreover, the difference in household food consumption expenditure per adult equivalent between the actual and counterfactual scenarios is very high. The findings of the study reveal that broader investment in agricultural technology and increased access and adoption of agricultural technologies significantly improve the welfare of farm households.

Research topics

  • Agricultural Innovations and Practices
  • Microfinance and Financial Inclusion
  • Energy and Environment Impacts

Sustainable Development Goals

Read the original research

This page summarises published work. The authoritative version sits with the publisher.

DOI: 10.1080/23322039.2021.2012988

Is something wrong with this record? Report it or request removal.

Discussion

Discuss this research

Have you built on this work, tried to replicate it, or seen it applied in practice? Share what you know. Verified researchers and MARATTO™ domain experts can open a discussion, and any member can reply. Contributions are reviewed before they appear.

No discussion yet. Open the first thread.