“Cursed is the ground because of you”:

Abstract

This paper analyses culture as a determinant of technology adoption in a developing country. While the literature discusses the influence of culture upon economic growth, little attention has been paid to the mechanisms at the micro level. Therefore, we postulate that culture plays a crucial role in hindering or fostering the diffusion of innovation, a key trigger of the engine of growth. This empirical study uses the Ethiopia Rural Household Survey to disentangle between individual cultural traits, namely, ethnicity and religion, and the cultural homogeneity of the environment as co-determinants of fertiliser adoption. To examine our hypotheses, we apply a multivariate survival model for clustered and correlated observations to account for time and location effects. The results reveal significant differences in the probability of adopting fertiliser among cultural groups. Moreover, habits and social norms, proxied by ethnicity, provide a better explanation for the role of culture, than religious beliefs, as usually posited in the literature. Also, the cultural environment turns out tobe a decisive trigger. The probability of adoption is higher in rural societies with a homogeneous ethnic environment but distinct religious variety.