Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)

Abstract

Global) value chains have contributed to agricultural technology adoption in transition countries and food export commodities in developing countries through various forms of vertical coordination, often associated with FDI. Adoption of modern technologies in agriculture is crucial for improving the productivity and welfare of poor farmers. Much less is known about how (global) value chains do (not) affect technology transfer and/or adoption in staple food chains in developing countries, and the role that FDI plays. Our paper analyses the role of value chains and FDI in farm-level technology adoption with the use of panel data from representative farm surveys in 2008 and 2015 (a period of rapid growth) in the dairy sector in India (Punjab). We find important increases in the adoption of some technologies among traditional and poor dairy farms. However, the role of vertical coordination in value chains in stimulating technology adoption among these traditional dairy farmers seems to be minor, both for domestic and for FDI companies. At the same time a sub-sector of dynamic modern dairy farms has emerged. These farms are much larger, use only modern technology, and are fully integrated in vertically coordinated value chains that support these modern farms' management and investments.

Pandemics and technology engagement: New evidence from m‐Health intervention during COVID‐19 in India

“…Engaging with technology, particularly m‐Health interventions and their associated behavioral channels and mechanisms, has been gaining recent attention in the broader technology diffusion literature (Geels et al, 2021 ; Gillingham & Bollinger, 2021 ). Our study also directly connects with past work in development economics that demonstrates how people learn and adopt technology (e.g., Sadish et al, 2021 ; Burkitbayeva et al, 2020 ; Conley & Udry, 2010 ; Bandiera & Rasul, 2006 , Munshi, 2004 , among others). More recent work also shows how mobile phones are welfare‐enhancing broadly and more so for connectivity in healthcare (e.g., Breza et al, 2021 ; Ghose et al, 2021; Siddique et al, 2021; Banerjee et al 2020 ; Ruton et al, 2018 ; McBride et al, 2018 ; Ybarra et al, 2014 ).…”

Hiding in plain sight: the emergence of modern dairy farms in India

“…For instance, Burkitbayeva et al (2020) use a representative sample from Punjab and find that total milk production declined slightly (À6%) between 2008 and 2015, while official statistics show that total milk production in Punjab increased by 11.5%. This gap is most likely at least partly explained by a growing share of production of these new large farms that were less likely to be captured by their survey.…”

Niveles De Exportación De Productos Tradicionales Y No Tradicionales Del Perú 2011 - 2020

“…Según la investigación de Burkitbayeva et al (2020) se concuerda al tener un porcentaje de crecimiento en las exportaciones no tradicionales, el primero sugiere un valor de un 31%, mientras que en el caso de Perú se logró alcanzar el 26%, una cifra muy aproximada al desempeño de la India, la importancia es que este porcentaje es un indicador muy positivo que demuestra un gran crecimiento sostenido y, de seguir así, podría convertir al Perú en un país referente en Latinoamérica de cómo pudo pasar de exportar productos tradicionales a productos no tradicionales. Por otro lado, se concuerda también con Grancay et al (2015) ya que se evidencia una disminución de las exportaciones tradicionales de 5% en el periodo estudiado, surgiendo la importancia que, en un futuro, dar valor agregado a las tradicionales y poder convertirlas en no tradicionales, teniendo experiencia en los sectores que abarca y su internalización y la transformación de materias primas a productos procesados.…”