Household Resource Endowment and Determinants of Adoption of Drought Tolerant Maize Varieties: A Double-hurdle Approach

Existing literature suggests the influence of household wealth on farmer's technology adoption decisions. In 2007, this study was conducted to provide a clearer understanding of how differences in household wealth affect the way in which other variables influence adoption decisions. Using data from 369 households in Adama and Adami Tulu Jido Kombolcha districts of Ethiopia, the paper first stratified households into poorly and well-endowed categories based on wealth indices constructed using their productive assets by the principal components method. A double hurdle model was then specified and estimated for each wealth group to assess factors influencing the adoption and use intensity of improved varieties. The results suggest that factors influencing the adoption and use intensity of improved maize varieties among the 61% of the poorly endowed households differed from those observed for the well endowed households. The results, therefore, draw attention to the need to design wealth group specific interventions to improve the adoption and use intensity of improved maize varieties among farmers in the two and similar districts of Ethiopia.