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2008-04-08 | EfD Discussion Paper

Market Imperfections and Farm Technology Adoption Decisions: A Case Study from the Highlands of Ethiopia

Yesuf, Mahmud and Gunnar Köhlin. 2008. “Market Imperfections and Farm Technology Adoption Decisions: A Case Study from the Highlands of Ethiopia.” EfD Discussion Paper 08.
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This examination of the impacts of market and institutional imperfections on technology adoption found that Ethiopian farmers’ decisions to adopt fertilizer significantly and negatively depended on whether they also adopted soil conservation, but not vice versa. Market imperfections were significant factors in explaining variations in decisions to adopt farm technology, such that relieving market imperfections could increase adoption of farm technologies.