Determinants and Welfare Impacts of Combined Harvester Adoption in Wetland Areas of Bangladesh: The Role of Market Participation

ABSTRACT Despite extensive research on climate‐related vulnerabilities in Bangladesh's wetland ecosystems, there remains limited empirical evidence on the drivers of combined harvester adoption in rice cultivation, particularly in flash flood‐prone regions. This study examines the determinants of combined harvester adoption and its subsequent effects on market participation and household welfare among smallholder farmers in the wetland areas of Sunamganj district in Bangladesh. Leveraging a multistage random sampling technique, we collected household‐level data from 200 boro rice growers. The empirical strategy employs a Probit model to identify the determinants of combined harvester adoption and a Heckman two stage selection model to account for potential selection bias in estimating the effects on market participation and welfare outcomes. Our findings indicate that combined harvester adoption is significantly influenced by farm size, household income, land tenure arrangement, and access to agricultural information. Landowners exhibit an 11.4% higher likelihood of adoption, while access to information increases adoption probability by 16.1%, underscoring the salience of information asymmetries in technology diffusion. Moreover, combined harvester adoption significantly enhances market participation, leading to higher per capita income and expenditure among smallholders. Additionally, Heckman two stage estimates indicate that adopters benefit from increased productivity and reduced labor constraints than non‐adopters. These findings highlight the importance of improving information access, strengthening extension services, and enabling land consolidation to promote combined harvester adoption in the clmate vulnerable wetland areas. Overall, expanding information access, strengthening extension services, and supporting larger farm operations can significantly boost combined harvester adoption and market participation, ultimately improving smallholder resilience and livelihoods.