Adoption and impact of super granulated urea (guti urea) technology on farm productivity in Bangladesh: A Heckman two-stage model approach

Abstract

We aimed to determine the impact of farmers’ guti urea technology adoption on farm productivity in the Rajbari District of Bangladesh. The multi-stage sampling techniques were used to obtain a total 400 samples where 181 (45.25%) adopters and 219 (54.75%) non-adopters. The pre-canvassing structured survey schedule was used during the personal interviews. In addition, FGDs and KIIs were conducted to obtain qualitative information. To analyze the collected data, descriptive statistics, probit regression, and Heckman's two-stage model were used. Firstly, a binary regression model was used to examine the factors determining the participation of farmers in the use of guti urea technology. Secondly, treatment effect was assessed by the Heckman's two-stage model to identify the impact of the farmers’ participation on the adoption of guti urea technology. The inverse Mill's ratio coefficient indicates the presence of selection bias and the efficacy of applying the two-stage Heckman model. The results show that the involvement of farmers in the use of guti urea technology has a significantly positive impact on farm productivity. The analysis also shows that a 1% increase in adoption of guti urea technology contributes to a significant increase in farm productivity when other factors remain the same. We conclude that there is room for further increases in farm productivity through planned guti urea technology adoption in crop production. We recommend that the policy makers and authority expand the use and ensure the accessibility of guti urea as well as disseminate knowledge through the development of training opportunities for farmers to increase and enhance the reach of guti urea adoption amongst farmers. The results imply that the provision of complementary services is necessary in addition to the adoption of guti urea to achieve the aim of improving productivity.