Causal impact of adopting irrigation technology on agriculture in Ethiopia: Evidence from a propensity score matching

Abstract

This research examines the causal effect of adopting large-scale irrigation (LSI) technology on agriculture in Ethiopia using data from 450 farmers. Of the total sample, 254 farmers have adopted the LSI technology while the rest 196 are non-adopters who serve as control groups. Based on the findings from propensity score matching, sensitivity analysis and robustness checks, it is evident that embracing LSI technology has a significant positive impact on crop revenue, crop productivity, accumulation of farming assets as well as uptake of other technologies such as chemical fertilizers, improved seeds and agrochemicals. Specifically, the findings revealed that, due to the adoption of LSI technology, technology adopters earned 33,639 Ethiopian Birr (1247.81 United States Dollar (USD)) and 79,258 Ethiopian Birr (2940.01 USD) more in crop revenue and crop revenue per hectare of land, respectively. Additionally, LSI technology adopters possessed over six farming assets and adopted and used at least one more technology as compared to the nonadopters. These results are statistically significant at the 1 percent significance level. Although the study primarily centers on the North Mecha district of Ethiopia, its outcomes potentially hold significance for smallholder farmers across various regions of Ethiopia and other African countries with similar agricultural contexts. • Studied the causal impact of adopting large-scale irrigation technology (LSI) on agriculture. • Analyzed data from 450 farmers: 254 adopters (treatment group) and 196 non-adopters (control group). • Used propensity score matching and sensitivity analysis to check robustness of the results. • Adopters earned an additional 33,639 Ethiopian Birr per year as revenue compared to non-adopters. • Adoption of large-scale irrigation technology promotes the use of other agricultural technologies.

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