Factor Market Failures and the Adoption of Irrigation in Rwanda
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World Bank, Washington, DC
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This paper examines constraints to
adoption of new technologies in the context of hillside
irrigation schemes in Rwanda. It leverages a plot-level
spatial regression discontinuity design to produce 3 key
results. First, irrigation enables dry season horticultural
production, which boosts on-farm cash profits by 70 percent.
Second, adoption is constrained: access to irrigation causes
farmers to substitute labor and inputs away from their other
plots. Eliminating this substitution would increase adoption
by at least 21 percent. Third, this substitution is largest
for smaller households and wealthier households. This result
can be explained by labor market failures in a standard
agricultural household model.
Palabras clave
TECHNOLOGY ADOPTION, IRRIGATION, MARKET FAILURES, HORTICULTURE, LABOR MARKET