Adoption and Impact of Improved Groundnut Varieties on Rural Poverty: Evidence from Rural Uganda

Menale Kassie, Bekele Shiferaw and Geoffrey Muricho

RFF Working Paper Series from Resources for the Future

Abstract: This paper evaluates the ex-post impact of adopting improved groundnut varieties on crop income and rural poverty in rural Uganda. The study utilizes cross-sectional farm household data collected in 2006 in seven districts of Uganda. We estimated the average adoption premium using propensity score matching (PSM), poverty dominance analysis tests, and a linear regression model to check robustness of results. Poverty dominance analysis tests and linear regression estimates are based on matched observations of adopters and non-adopters obtained from the PSM. This helped us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Furthermore, we checked covariate balancing with a standardized bias measure and sensitivity of the estimated adoption effect to unobserved selection bias, using the Rosenbaum bounds procedure. The paper computes income-based poverty measures and investigates their sensitivity to the use of different poverty lines. We found that adoption of improved groundnut technologies has a significant positive impact on crop income and poverty reduction. These results are not sensitive to unobserved selection bias; therefore, we can be confident that the estimated adoption effect indicates a pure effect of improved groundnut technology adoption.

Keywords: groundnut technology adoption; crop income; poverty alleviation; propensity score matching; switching regression; stochastic dominance; Rosenbaum bounds; Uganda (search for similar items in EconPapers)
JEL-codes: C01 C21 I32 O12 Q16 (search for similar items in EconPapers)
Date: 2010-05-25
New Economics Papers: this item is included in nep-afr and nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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