THE COMPLEX DYNAMICS OF SMALLHOLDER TECHNOLOGY ADOPTION: THE CASE OF SRI IN MADAGASCAR

This paper explores the dynamics of smallholder technology adoption, with particular reference to a high-yielding, low-external input rice production method in Madagascar. We present a simple model of technology adoption by farm households in an environment of incomplete financial and land markets. We then use a probit model and a symmetrically trimmed least squares estimation of a dynamic Tobit model to analyze the decisions to adopt, expand and disadopt the method. We find that seasonal liquidity constraints discourage adoption by poorer farmers. Learning effects both from extension agents and from other farmers exert significant influence over adoption decisions.