Learning from neighboring communities: a spatial analysis of improved seed adoption
Date
2025-12
Authors
Zapiola, Juan Segundo
relationships.isContributorOfPublication
Herrera Gómez, Marcos
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This study investigates how spatial interactions between neighboring communities influence decisions regarding the proportion of improved seed adoption in rural Malawi. Using georeferenced community panel data from 2010 to 2019, the study explores two key research questions: (1) how spatial interactions with neighboring communities influence the proportion of improved seed varieties adopted, including whether key financial determinants have spillover effects on adoption, and (2) how drought shocks affect the strength and direction of these peer effects. A Spatial Lag Model (SLM) is estimated to quantify this spatial interaction, where results show that neighboring communities’ behavior significantly influences local adoption rates. Higher adoption levels in neighboring areas are associated with significantly higher local adoption rates, confirming the presence of peer effects across communities. However, the influence of neighboring communities extends beyond their own adoption behavior alone. The analysis shows that access to seed subsidies (coupons) not only drive local adoption but also spill over to influence adoption patterns in nearby communities, underscoring the potential of targeted interventions to generate broader regional impact. To address the second question, the analysis incorporates climate variability using the Standardized Precipitation Evapotranspiration Index (SPEI), which allows for the examination of how drought shocks alter the dynamics of peer effects in the adoption process. Using an instrumental variables approach, the analysis finds that these shocks do not significantly alter the degree to which neighboring communities influence each other’s adoption behavior, suggesting that peer effects remain relatively stable even under adverse weather conditions.
Description
Fil: Zapiola, Juan Segundo. Universidad de San Andrés. Departamento de Economía; Argentina.