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Abstract
Previous studies on innovation in agriculture focus mainly on identifying observable and
resource related deprivation or ‘external’ constraints. Yet, related literature suggests that
‘internal’ constraints, such as lack of aspirations, could reinforce external constraints and
this may lead to a self-sustaining trap of poverty and lack of proactive behavior. Since both
aspirations and innovations are future oriented they are likely to be intimately linked.
Aspirations are motivators which can enhance innovations. On the other hand, aspirations
are also affected by one’s level of achievement implying that aspirations and innovations are
simultaneously determined. To identify the effect of aspirations on adoption of agricultural
innovations, we conduct both plot level and household level analysis using a purposely
collected data from sample households in rural Ethiopia. Using econometric strategies that
account for the endogenous nature of the variable of interest, we find that low aspirations
(and having very-narrow/wide aspirations gap) are strongly associated with low
innovativeness of farm households and low adoption of innovation products such as
improved seed, and low involvement in row-planting and sustainable natural resource
management practices. Results suggest that the effect of aspirations is stronger on the
intensity of use of innovations (e.g. fertilizer use per hectare of land) than its effect on access
to or use of individual innovations if those innovations are widely adopted in the study areas.
We also find other internal factors such as self-esteem, internal locus of control, trust in
others, subjective wellbeing, and perception on causes of poverty to be strongly correlated
with aspirations and expectations.