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Working Paper 233 - Technology Adoption and Risk Exposure among Smallholder Farmers: Panel Data Evidence from Tanzania and Uganda
In most developing countries, increasing agricultural productivity is the overarching goal of policy makers and their development partners. Especially for sub-Saharan African (SSA) countries where half of the population lives in poverty, technological changes in the agricultural sector are often considered as one of the key pathways for fighting food insecurity, spurring economic growth, overcoming extreme poverty, and improving populations’ wellbeing. Indeed, in many of these countries, the majority of households still live in rural areas and depend on agricultural activities as their main employment and earning sources. In Tanzania and Uganda for example where around 80% of the population lives in rural areas, the agricultural sector contributes at least 25% of the Gross Domestic Product, provides about 45% of earning sources, and employs over 65% of the total labor force of the country (World Bank, 2015).