Mutual proximity and heterogeneity in peer effects of farmers' technology adoption: evidence from China's soil testing and formulated fertilization program
China Agricultural Economic Review
ISSN: 1756-137X
Article publication date: 24 January 2022
Issue publication date: 22 March 2022
Abstract
Purpose
While the peer effects of technology adoption are well established, few studies have considered the variation in peer effects resulting from the mutual proximity between leaders and followers and the heterogeneity of farmers' learning technology. This study addresses the gap in the literature by analyzing the peer effects of technology adoption among Chinese farmers.
Design/methodology/approach
Drawing on a government-led soil testing and formulated fertilization program, this study uses survey data of farmers from three Chinese provinces to examine the peer effects of technology adoption. This study uses a probit model to examine how mutual proximity influences peer effects and their heterogeneity. Accordingly, farmers were divided into two groups, namely small- and large-scale farmers, and then into leaders or followers depending on whether they were selected by the government as model farmers.
Findings
Both small- and large-scale farmers are more likely to use formula fertilizer if their peers do so. However, a large-scale farmer is more likely to adopt formula fertilizer if the average adoption behavior of other large-scale model (leader) farmers is higher, while a small-scale farmer is more likely to adopt formula fertilizer if other small-scale non-model (follower) farmers have higher average adoption behavior. Moreover, the peer effect was weakened by geographic distance among small-scale farmers and by economic distance among large-scale farmers.
Originality/value
This study elucidates the means of optimizing social learning and technology adoption among farmers.
Keywords
Acknowledgements
Funding: The research was funded by the National Natural Science Foundation, China (No: 71773052 and 71773053); the Priority Academic Program Development of Jiangsu Higher Educational Institutions (PAPD); and the Center for Food Security of China, Nanjing Agricultural University.
Citation
Xu, Z., Zhang, K., Zhou, L. and Ying, R. (2022), "Mutual proximity and heterogeneity in peer effects of farmers' technology adoption: evidence from China's soil testing and formulated fertilization program", China Agricultural Economic Review, Vol. 14 No. 2, pp. 395-415. https://doi.org/10.1108/CAER-10-2020-0250
Publisher
:Emerald Publishing Limited
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