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Factor Market Failures and the Adoption of Irrigation in Rwanda (English)

This paper examines constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. It leverages a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 53–71 percent. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 30 percent. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.


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    Jones,Maria Ruth, Kondylis,Florence, Loeser,John Ashton, Magruder,Jeremy

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    Policy Research Working Paper

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    Factor Market Failures and the Adoption of Irrigation in Rwanda

  • Keywords

    irrigation; access to irrigation; Development Impact Evaluation; marginal product of labor; complete primary school; operation and maintenance cost; access to irrigation water; sample plot; labor market failure; dry season; impact of irrigation; water user group; follow up survey; labor market friction; operations and maintenance; use of irrigation; flow of water; cost of construction; source water; household labor supply; term of ownership; allocation of labor; allocation of land; body of water; randomized controlled trials; insurance market failure; access to water; dry season use; agricultural household model; propensity score matching; surface water irrigation; canal irrigation systems; construction and rehabilitation; volume of water; rainy season; shadow wage; input use; agricultural production; market wage; standard error; horticultural production; fixed effect; irrigation scheme; land market; technology adoption; factor market; household head; sampling strategy; agricultural season; household characteristic; regression coefficient; standard deviation; input substitution; farmer; agricultural productivity; water source; labor expenditures; commercial crop; summary statistic; natural experiment; primary completion; production decision; alternative specification; household survey; commercial farmer; cultivable land; irrigation site; water pressure; household size; export crop; horizontal axis; binding constraint; primarily use; substitution effect; low pressure; profit maximization; rural area; rural market; facilitating trade; accessible water; collected data; primary data; panel data; input data; baseline survey; productivity shock; inefficient technology; dry year; experimental treatment; measurement error; spatial sampling; main canals; local market; financial constraint; sample period; production function; significant challenge; production inefficiency; basis risk; information constraint; household sample; previous work; level analysis; irrigation works; agronomic characteristic; soil characteristic; rental price; agricultural land; forest plot; new investment; plot boundary; diminishing return; farmer households; research assistance; inefficient allocation; empirical work; productivity gap; water-intensive crop; complementary input; market access; spatial regression; crop choice; confidence interval; asset index; housing expenditure; new technology; open access; development policy; study period; labor use; irrigation construction; statistical significance; Research Support; classification code; functional form; research funding; land title; consumer price; producer price; price risk; routine maintenance; property right; groundwater irrigation; River basin; Exchange Rates; improved seed; market price; shadow price



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Jones,Maria Ruth Kondylis,Florence Loeser,John Ashton Magruder,Jeremy

Factor Market Failures and the Adoption of Irrigation in Rwanda (English). Policy Research working paper,no. WPS 9092,Impact Evaluation series Washington, D.C. : World Bank Group.