Technology transfer and agricultural mechanization in Tanzania: institutional adjustments to accommodate emerging economy innovations

Abstract

ABSTRACTRecent economic growth in Tanzania has been biased towards industry and services, denying farmers potential distributional benefits. Correcting this anomaly requires in part appropriate technologies to raise agricultural productivity. Attempts to either develop local tools or import advanced country technologies had limited benefits. Recent studies suggest that for poor producers in Tanzania, mechanization technologies from emerging economies are more appropriate in relation to their production characteristics. However, being locked-in advanced country technologies means both market and non-market institutions responsible for mechanization technology transfer in Tanzania have evolved to suite machines from the EU, Japan and USA. To accommodate the new market dynamic, where attention is shifting to emerging economies, modifications to the current technology transfer infrastructure are required. Using firm, farm and government level data on importation, distribution, usage and maintenance of tractors in Tanzania, this paper argues that the potential benefits of emerging economy tractors can be greatly enhanced if calculated attempts are made to modify the existing technology transfer and diffusion process.