Replication Data for Chapter 4: Does exposure to markets promote farmers' investment behavior? - Empirical evidence from rural Ethiopia

Specifically, we explore whether and how access to markets affects farmers’ adoption of risky but profitable technologies in a setting where farmers can not directly purchase these technologies from the market. This study provides new evidence by focusing on the demand-side, instead of the supply-side impact of market exposure on investment decisions.

We utilize survey and incentivized experimental data collected from the Tigray regional state of Ethiopia. We use an Endogenous Switching Probit and IV-Probit models to attenuate the potential self- selection bias. We find that market exposure induces farmers to adopt agricultural technologies, such as chemical fertilizer, improved seeds, manure, and row planting.