Technology adoption in the presence of constraints : the case of fertilizer demand in Ethiopia

Using a nationally representative dataset, and information on why farmers did not purchase fertilizer, the authors estimate a double-hurdle fertilizer adoption model for Ethiopia. Access is an overriding constraint in four zones. The results underline the importance of increasing the availability of credit, developing labor markets, and reducing the procurement, marketing and distribution costs of fertilizer. The authors conclude that current large-scale transport, health, and education investment programs will positively impact smallholder productivity and household welfare. (InWent/DÜI)