The Impact of Migration, Remittances and Public Transfers on Technology Adoption: The Case of Cereal Producers in Rural Kenya

Risk and liquidity constraints are major obstacles to the adoption of modern technologies in many rural African countries. Migration and remittances can help rural households overcome these constraints and increase the adoption of modern technologies. We analyse the impact of migration, remittances and government transfers on the adoption of improved seeds in rural Kenya. Using data from the World Bank, two stage least-squares estimates show that both migration and remittances positively affect the adoption of improved seeds. However, three stage least-squares estimates reveal that the adoption of new technologies is more related to migration than remittances.