FARM TECHNOLOGY ADOPTION UNDER MARKET IMPERFECTIONS: EVIDENCE FROM THE FERTILIZER MARKET IN NORTHERN ETHIOPIA
FARM TECHNOLOGY ADOPTION UNDER MARKET IMPERFECTIONS: EVIDENCE FROM THE FERTILIZER MARKET IN NORTHERN ETHIOPIA

Summary/Abstract: This paper examines households’ participation in fertilizer markets based on the data from a survey conducted in 2003 in Tigray, Ethiopia. Most previous empirical studies mainly focus on the extent of fertilizer use by treating the production and consumption decision separately. This paper, however, presents a static farm household model that accounts for a simultaneous decision making in production and consumption. Our results indicate that the likelihood of fertilizer adoption and the intensity of the input use are mainly explained by access to credit, labor endowment, consumer-worker ratio and livestock ownership. Both the likelihood and the intensity of fertilizer use decreases with the age of the household head, distance to the information center and availability of irrigation.

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