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Innovation Adoption and Liquidity Constraints in the Presence of Grassroots Extension Agents : Evidence from the Peruvian Highlands

Bonjean, Isabelle; Platteau, Jean-Philippe; Verardi, Vicenzo (2017), Innovation Adoption and Liquidity Constraints in the Presence of Grassroots Extension Agents : Evidence from the Peruvian Highlands, NOPOOR Policy Brief, 30, p. 5. https://basepub.dauphine.fr/handle/123456789/18193

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Type
Rapport
Date
2017
Series title
NOPOOR Policy Brief
Series number
30
Pages
5
Metadata
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Author(s)
Bonjean, Isabelle

Platteau, Jean-Philippe
Center of Research in the Economics of Development [CRED]
Verardi, Vicenzo
Abstract (EN)
This policy brief is aimed at identifying the constraints to innovation adoption in agricultural production in developing economics. It focuses on the effect of a program aimed at activating a market for technical innovations in the region of Highlands in Peru. The authors find that innovations were widely adopted and that liquidity constraints played only a limited role. They show that this is driven by two main reasons: (1) some key innovations were cheap and/or divisible and (2) the extension agents lifted liquidity constraints by providing credit to help the purchase of inputs.
Subjects / Keywords
credit; Innovation adoption; liquidity constraint; Trust
JEL
G30 - General
G10 - General