The present paper assesses the impact of improved upland rice technology on farmers' well‐being. The study uses propensity‐score matching to address the problem of ‘self‐selection,’ because technology adoption is not randomly assigned. It applies this procedure to household survey data collected in Yunnan, China in 2000, 2002 and 2004. The findings indicate that improved upland rice technology has a robust and positive effect on farmers' well‐being, as measured by income levels and the incidence of poverty. The effect of technology on well‐being shows a diminishing impact on producers' incomes. This implies that newer innovations are continuously needed to replace older technologies that have reached their saturation points.

Drought is a major constraint affecting rice production especially in rainfed areas of Asia.Despite its importance in rice growing areas, the magnitude of economic losses arising from drought, its impact on farm households and farmers' drought coping mechanisms are poorly understood. This paper provides insights into these aspects of drought based on a cross-country comparative analysis of rainfed rice growing areas in China, India and Thailand.The economic cost of drought is found to be substantially higher in eastern India than in the other two countries. Higher probability and greater spatial covariance of drought and less diversified farming systems with rice accounting for a large r share of household income are likely to be the main reasons for this higher cost of drought in eastern India. Farmers deploy various coping mechanisms but such mechanisms are largely unable to prevent a reduction in income and consumption, especially in eastern India. As a result, welfare consequences on poor farmers are substantial with a large number of people falling back into poverty during drought years. The overall implications for technology design and for policy improvements for drought mitigation and drought relief are discussed in the light of the empirical findings of the study.

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Poverty among ethnic minorities and the majority in rural China for the years 2000, 2001 and 2002 is investigated, taking a dynamic view and using a large sample covering 22 provinces. Based on the National Bureau of Statistics' low income line, almost one‐third of the ethnic minorities experienced poverty during the three years studied while the corresponding proportion among the ethnic majority was only about half as high. Still, by far most of the poor in rural China belong to the ethnic majority. The relatively high poverty rates for ethnic minorities in rural China are found to be due to higher rates of entry than for the majority, while differences in exit rates across ethnicities are few. To a large extent, ethnic poverty differences can be attributed to differences in location, together with temporary and persistent poverty in rural China having a very clear spatial character. Poverty is concentrated in the western region and villages with low average income. Determinants of persistent and temporary poverty in rural China differ due to location as well as household characteristics.