The Role of Social Capital in Technology Adoption by Small Farmers

There is increasing interest in social capital as an additional resource for economic development. This is because social capital can facilitate the flow of information and reduce transaction costs that is critical for agricultural development in developing economies. However, there is scanty information on the role of social capital in agricultural development and its determinants among agricultural households.The study summarized in this monograph elaborates that social capital has a role in crop production decisions of Ugandan farmers but the nature of its productivity is conditioned by other factors. The study finds that household membership in associations influences use of improved banana production management practices but the structure of participation and characteristics of those associations such as managerial capacity of leaders matter. Household membership in associations and social networks is influenced by household wealth, education, institutional environment and social heterogeneity of the community.