No.71 To What Extent Does the Adoption of Modern Variety Increase Productivity and Income? A Case Study of the Rice Sector in Tanzania

Although high-yielding modern rice varieties (MVs) have been gradually disseminating over Sub-Saharan Africa, little is known about how their adoption influences agriculture productivity and household income. To fill this research gap, we analyzed two kinds of data sets in Tanzania: a national representative cross-sectional data and a two-year panel data of irrigated farmers in one district. The most important finding is a strong complementary relationship between MVs and water control; high yield is achieved when MVs are grown with improved bunds in paddy fields of irrigated areas. We also find that the use of chemical fertilizer and the practice of transplanting in rows increase yield and income of both the adopters and nonadopters of MVs in the irrigated areas. In rain-fed areas, we observe a limited impact of MVs. These findings suggest that introducing MVs as a package of technologies with agronomic practices is ffective to fully achieve their potential. In the long run, development of irrigation would be important to realize a rice Green Revolution in Sub-Saharan Africa.