Impact of Agricultural Technology Adoption on Food Consumption Expenditure: Evidence from Rural Amhara Region, Ethiopia

Abstract

The purpose of this study is to examine the impact of agricultural technology adoption on household food consumption expenditure in rural Amhara regional state, Ethiopia. The study is based on the data obtained from the Ethiopian Socioeconomic Survey collected in 2015/16. Household-level data were taken from 656 rural farm households in the Amhara region of Ethiopia. The study used the endogenous switching regression model to estimate the impacts of agricultural technology adoption on household food consumption expenditure per adult equivalent per annum. The result of the study reveals that adopting agricultural technology significantly increases household food consumption expenditure per adult equivalent. Moreover, the difference in household food consumption expenditure per adult equivalent between the actual and counterfactual scenarios is very high. The findings of the study reveal that broader investment in agricultural technology and increased access and adoption of agricultural technologies significantly improve the welfare of farm households.