The impact of Access to Credit and Training on Technological Adoption: A Case of the Rice Sector in Tanzania

Using an extensive household-level data set collected in Tanzania, this paper investigates the determinants of the technological adoption of rice cultivation and of paddy yield. We especially focus on the impact of credit and training on the adoption of modern technologies. Based on empirical results, we argue that modern inputs and improved practices of rice cultivation enhance the increase in paddy yield. We also argue that the impact of credit and training on the adoption of modern technologies can differ for different technologies. If the adoption of a specific technology does not require a large amount of cash, knowledge given by training is sufficient to enhance adoption. On the other hand, those who can access credit or self-finance can adopt technologies, which require cash on hand.