Social Capital and Agricultural Technology Adoption among Ethiopian Farmers

Abstract

Despite the recent efforts to increase agricultural productivity in Ethiopia, food insecurity remains a major challenge in the country. Improving smallholders´ productivity requires the adoption of suitable agricultural technologies and practices. Previous researches highlighted the importance of socio-economic factors; but widely overlooked the role of social capital in technology adoption and its potential to create collective actions, reduce transaction costs, relax supply side constraints, and disseminate information. Using socio-economic data of 398 farming households, the study assessed social capital as a determinant for soil and water conservation practices (SWC) such as terraces, bunds and agro-forestry as well as adopting productivity enhancing technologies (PET) such as fertilizers and improved high yielding seed varieties applying a probit model. The result showed that members of Iddir (informal funeral group) were more likely to adopt SWC (18.2%). For the case of PET, Iddir members were 12.8% less likely to adopt. Being members of Jarsumma (informal conflict resolution) increased the likelihood of SWC and PET adoption by 12.87% and 17.8%, respectively. Therefore, technology transfer should consider different types of social capital as an alternative policy option to the prevailing top down approaches in order to improve smallholder livelihoods.