The complex dynamics of smallholder technology adoption: the case of SRI in Madagascar

This article 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 symmetrically censored 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.