Theoretical Relations Of Agricultural Technology And Poverty

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2.3 Theoretical relations of agricultural technology and poverty
The relationship between agricultural technology and poverty reduction has been a source of fervid debate for the past four decades. The bulk of the literature on the Green Revolution technologies argues that ‘the higher yielding plant varieties, the greater use of fertilizers and the increased irrigation’ have been essential for the decline of poverty in Asia (Mendola, 2006).
The extensive review on a theoretical ground, there are several plausible arguments to expect that agricultural technology can reduce poverty. On the basis of the literature, we can distinguish direct and indirect effects of technology adoption on household poverty reduction. Direct effects of technology on poverty reduction include increase productivity gains and lower per unit costs of production, which can raise incomes of producers that adopt technology. There are also a number of indirect benefits from technology adoption: depending on the elasticity of demand, outward shifts in supply can lower food prices and increased productivity may stimulate the demand for labour. Most of results show that the dominant effect of technology on poverty is through direct effects in Africa, indirect agricultural employment effects in Asia (Munongo and Chitungo, 2010).

The adoption of high yielding rice and wheat varieties effect on per capita expenditure and reduce poverty, generally increased demand for labour due to the higher harvesting and

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