Production environments, modern variety, adoption, and income distribution in Bangladesh

Major findings of the study are the following: (1) The adoption of modern varieties in Bangladesh is determined more by technical and environmental factors (access to irrigation facilities, topography, soil salinity, and amount of rainfall) than by socioeconomic factors (farm size, tenurial status of the farmer). Infrastructure variables, measured by access to electricity and transport facilities, and subsistence pressure at the household and village levels are also important factors behind the technology diffusion. (2) The adoption rate of modern varieties is high in villages with unfavorable land endowments, low nonfarm employment opportunities, or both. (3) The diffusion of the new technology has some impact on the operation of land and labor markets. (4) The incidence of tenancy increased with the adoption of modern varieties, as land is transferred from large to small landowners through tenancy transactions. (5) The size of the labor market increases with modern variety adoption. The demand for hired labor increases at a higher rate than the use of family labor. (6) The diffusion of the new technology increases land prices. (7) the income gains from the cultivation of modern varieties are shared by all factors of production, but they are distributed relatively more in favor of capital and land at the expense of labor. (8) Rice cultivation accounts for only 40% of rural household incomes. (9) Inequality in household income from rice cultivation increases with the adoption of new technology. (10) The diffusion of modern rice technology has had a positive effect on the alleviation of poverty. (11) The flood-prone areas enjoy the highest net gains from the adoption of the new technology. (12) The drought-prone highland areas have benefited the least from modern rice technology because irrigation expansion for these areas has been difficult and costly and (13) There is still good potential for further diffusion of the new rice technology in Bangladesh