The latest turmoil of production and price volatility in the global food sector has put agriculture back to the top of the development agenda. Population growth, changing consumer preferences, bioenergy demand and climate change are some of the huge challenges for agricultural production today and in the future. In the last decades, productivity has been constantly improved through the introduction of improved crop varieties and the greater use of mechanization, irrigation, chemical fertilizer and pesticides.
Mobile phone based money services have spread rapidly in many developing countries. We analyze micro level impacts using panel data from smallholder farmers in Kenya. Mobile money use has a large positive net impact on household income. One important pathway is through remittances, which contribute to income directly but also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased inputs, market a larger proportion of their output, and have higher farm profits.
Most micro-level studies on the impact of agricultural technologies build on cross-section data, which can lead to unreliable impact estimates. Here, we use panel data covering two time periods to estimate the impact of tissue culture (TC) banana technology in the Kenyan small farm sector. TC banana is an interesting case, because previous impact studies showed mixed results. We combine propensity score matching with a difference-in-difference estimator to control for selection bias and account for temporal impact variability.