Econometric Analyses of Adoption and Household-Level Impacts of Improved Rice Varieties in the Uplands of Yunnan, China

Abstract

Higher-yielding rice varieties adapted to the upland conditions of Yunnan were developed and disseminated during the late 1990s. Using cross-sectional farm-level data of 448 households collected from five prefectures in Southern Yunnan, this paper carries out an econometric analysis of the determinants of variations in the adoption of improved varieties among households and assesses the impact of adoption on rice income and total household income. The two major determinants of adoption were found to be the government programs for extension of improved upland rice varieties and for terracing of sloping fields. The presence of government programs for extension and for terracing contributed to increased adoption of improved varieties. Household-specific factors such as land and labor endowments were less important as these variables had a statistically insignificant impact on adoption. The adoption of improved rice varieties increased both rice income and the average household income. About half of the household income difference observed between the full adopters and non-adopters of improved rice varieties with comparable household characteristics can be attributed directly to the adoption. The results imply that increased investments in promoting improved rice varieties and terracing will generate additional income growth in the uplands of Yunnan.