Imperfect information and learning: Evidence from cotton cultivation in Pakistan

Information problems are pervasive in developing economies and can hinder productivity growth. This paper studies how much rural producers countries learn from their own cultivation experience, i.e. learning by doing, to redress important information gaps about imperfectly known input technologies. First, I build a theoretical model which links doing one period improved choices the next period, show that this be impeded uncertainty what is being observed due noisy signals infer market varieties imperfect variety integrity. Second, apply framework cotton farmers Pakistan, where have prior extent seeds pest resistant biotechnology. The results suggest unable aspect of high degree noise signals. highlights potential difficulties parsing out processing experience alone therefore development context.