The ex‐post impact of agricultural technology adoption on poverty: Evidence from north Shewa zone of Amhara region, Ethiopia

Abstract

AbstractThis study investigates the impact of agricultural technology adoption on poverty reduction in north Shewa zone of Amhara region of Ethiopia in 2020. Using the selection model, this study finds that farm household's decision to adopt agricultural technologies are mainly influenced by sex of the household head, credit access, saving, extension visit, farm cooperatives and distance from market. Using an endogenous switching regression model, this study finds that adopters of agricultural technologies have higher food consumption expenditure per adult. Moreover, the significant difference in food consumption expenditure per adult equivalent between the actual and counterfactual scenario is very high. The result of the study confirmed that adoption of agricultural technology has a direct and significant impact on increasing household's consumption expenditure while also reducing household poverty. The findings of the study suggest that increasing the access and adoptions of agricultural technologies significantly improves the welfare of farm households.