Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh

This study aims at shedding some light on the potential impact of agricultural technology adoption on poverty alleviation strategies. It does so through an empirical investigation of the relationship between technological change, of the Green Revolution type, and wellbeing of smallholder farm households in two rural Bangladeshi regions. As technology adoption is not randomly assigned but there is 'self-selection into treatment', the paper tackles a methodological issue in assessing the 'causal' effect of technology on farm-household wellbeing through the non-parametric 'p-score matching analysis'. It pursues a targeted evaluation of whether adopting a modern seed technology causes resource-poor farmers to improve their income and decrease the propensity to fall below the poverty line. It finds a robust and positive effect of agricultural technology adoption on farm household wellbeing suggesting that there is a large scope for enhancing the role of agricultural technology in 'directly' contributing to poverty alleviation. (C) 2006 Elsevier Ltd. All rights reserved.