Journal
AUSTRALIAN JOURNAL OF AGRICULTURAL AND RESOURCE ECONOMICS
Volume 59, Issue 2, Pages 225-241Publisher
WILEY
DOI: 10.1111/1467-8489.12058
Keywords
hybrid rice; social network; spatial diffusion; technology spillover
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Funding
- United States Agency for International Development (USAID)
- Bill and Melinda Gates Foundation
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In this paper, we demonstrate a method for measuring the effect of spatial interactions on the use of hybrid rice using a unique, nationally representative data set from Bangladesh. In order to circumvent the reflection problem', we consider an identification and estimation strategy employing a generalised spatial two-stage least squares procedure with near-ideal instruments to effectively identify causal influences. Results indicate that neighbour effects are a significant determinant of hybrid rice use. Further, using two specifications of spatial network systems, one based on same-village membership (irrespective of distance) and the other based on geographical distance (irrespective of village boundary), we demonstrate that a network including nearby hybrid rice adopters is more influential than a network of more distant hybrid rice adopters, and merely having a network with a large number of adopters may be relatively meaningless if they are far away. Furthermore, we show that these network effects are much more important to hybrid cultivation than interactions with agricultural extension officers.
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