Market participation and technology adoption: An application of a triple-hurdle model approach to improved sorghum varieties in Mali

Abstract

This study examines the relationship between market participation and agricultural technology adoption. Using data collected in 2017 from 542 sorghum household farms in Mali, a triple hurdle model that integrates the three following separate stochastic decisions: improved sorghum varieties adoption, market participation and marketed quantity is proposed to investigate the underlying process of market participation. Results indicate that the adoption decision plays a key role in market participation and marketed quantities. Adoption decision precedes that of market participation, and this latter precedes marketed quantity. These findings extend the market participation and agricultural technologies adoption literature and have methodological and political implications. First, the triple-hurdle model consistently controls for selection bias and endogeneity between market participation and adoption. Second, the process of sorghum breeding needs to take into account market opportunity and market demand. Third, upscaling projects might facilitate initiatives that enhance market access to smallholder farmers. The study concludes that interventions that facilitate households’ participation in the sorghum market and the accounting for market demand in breeding programs could enhance the uptake of improved varieties.

Keywords

• I31
• Q15
• Q24