Personalized digital extension services and agricultural performance: Evidence from smallholder farmers in India.

Productivity growth in smallholder agriculture is an important driver of rural economic development and poverty reduction. However, smallholder farmers often have limited access to information, which can be a serious constraint for increasing productivity. One potential mechanism to reduce information constraints is the public agricultural extension service, but its effectiveness has often been low in the past. Digital technologies could enhance the effectiveness of extension by reducing outreach costs and helping to better tailor the information to farmers' individual needs and conditions. Using primary data from India, this study analyses the association between digital extension services and smallholder agricultural performance. The digital extension services that some of the farmers use provide personalized information on the types of crops to grow, the types and quantities of inputs to use, and other methods of cultivation. Problems of selection bias in the impact evaluation are reduced through propensity score matching (PSM) combined with estimates of farmers' willingness to pay for digital extension. Results show that use of personalized digital extension services is positively and significantly associated with input intensity, production diversity, crop productivity, and crop income.

Promises and pitfalls of digital credit: Empirical evidence from Kenya.

Digital credit is a recent innovation that raises hopes of improving credit access in developing countries. However, up until now, empirical research on the extent to which digital credit actually reaches people who are otherwise excluded from conventional credit markets and whether increased credit access is sustainable or threatened by high default and blacklisting rates is very scarce. Using representative data from Kenya, this article shows that digital credit increases borrowing opportunities, including for people less likely to otherwise have credit access in the conventional credit markets. However, we find that digital credit borrowing is also responsible for 90% of all blacklistings, which is partially driven by higher default rates in the digital credit market but also by a higher probability that digital credit defaults lead to blacklisting of the borrower, compared to defaults in other credit markets.