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Cropland Allocation Effects of Agricultural Input Subsidies in Malawi

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Author Info

  • Chibwana, Christopher
  • Fisher, Monica
  • Shively, Gerald

Abstract

We measure the impacts of Malawi’s Farm Input Subsidy Program on the cropland allocation decisions of farmers in Kasungu and Machinga districts in central and southern Malawi. Using a two-step regression strategy to control for endogenous selection into the program, we find positive correlations between participation in the program and the amount of land planted with maize and tobacco. Furthermore, results suggest that participating households simplified crop production by allocating less land to other crops (e.g., groundnuts, soybeans, and dry beans). Our findings have implications for policies aimed at promoting both food self-sufficiency and crop diversification in low income settings.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 1 ()
Pages: 124-133

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:1:p:124-133

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: Africa; farm input subsidy program; land allocation; crop diversification; Malawi;

References

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  1. Salvatore Di Falco & Jean-Paul Chavas, 2007. "On Crop Biodiversity, Risk Exposure, and Food Security in the Highlands of Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 599-611.
  2. Zhiying Xu & William J. Burke & Thomas S. Jayne & Jones Govereh, 2009. "Do input subsidy programs "crowd in" or "crowd out" commercial market development? Modeling fertilizer demand in a two-channel marketing system," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 79-94, 01.
  3. Monica Fisher & Gerald E. Shively & Steven Buccola, 2005. "Activity Choice, Labor Allocation, and Forest Use in Malawi," Land Economics, University of Wisconsin Press, vol. 81(4).
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  10. Aslihan Arslan, 2008. "Shadow vs. market prices in explaining land allocation: Subsistence maize cultivation in rural Mexico," Kiel Working Papers 1469, Kiel Institute for the World Economy.
  11. Smale, Melinda & Bellon, Mauricio R & Aguirre Gomez, Jose Alfonso, 2001. "Maize Diversity, Variety Attributes, and Farmers' Choices in Southeastern Guanajuato, Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 201-25, October.
  12. Feder, Gershon, 1980. "Farm Size, Risk Aversion and the Adoption of New Technology under Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 263-83, July.
  13. Alastair Orr, 1998. "Unwrapping a technology package: Burley, fertiliser, and hybrid maize in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 15(1), pages 85-101.
  14. Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
  15. Fisher, Monica & Shively, Gerald, 2005. "Can Income Programs Reduce Tropical Forest Pressure? Income Shocks and Forest Use in Malawi," World Development, Elsevier, vol. 33(7), pages 1115-1128, July.
  16. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
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Citations

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Cited by:
  1. Kilic, Talip & Whitney, Edward & Winters, Paul, 2013. "Decentralized beneficiary targeting in large-scale development programs : insights from the Malawi farm input subsidy program," Policy Research Working Paper Series 6713, The World Bank.
  2. Holden, Stein, 2013. "Amazing maize in Malawi: Input subsidies, factor productivity and land use intensification," CLTS Working Papers 4/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  3. Mason, Nicole M. & Jayne, T.S. & Mofya-Mukuka, Rhoda, 2013. "A Review of Zambia’s Agricultural Input Subsidy Programs: Targeting, Impacts, and the Way Forward," Food Security Collaborative Working Papers 162438, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Nordhagen, Stella & Pascual, Unai, 2013. "The Impact of Climate Shocks on Seed Purchase Decisions in Malawi: Implications for Climate Change Adaptation," World Development, Elsevier, vol. 43(C), pages 238-251.
  5. Bezu, Sosina & Kassie, Girma T. & Shiferaw, Bekele & Ricker-Gilbert, Jacob, 2014. "Impact of Improved Maize Adoption on Welfare of Farm Households in Malawi: A Panel Data Analysis," World Development, Elsevier, vol. 59(C), pages 120-131.
  6. Mason, Nicole M. & Jayne, T.S. & Walle, Nicolas van de, 2013. "Fertilizer Subsidies and Voting Patterns: Political Economy Dimensions of Input Subsidy Programs," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149580, Agricultural and Applied Economics Association.
  7. Holden, Stein, 2014. "Agricultural Household Models for Malawi:Household Heterogeneity, Market Characteristics, Agricultural Productivity, Input Subsidies, and Price Shocks. A Baseline Report," CLTS Working Papers 5/14, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  8. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2012. "Do Fertilizer Subsidies Boost Staple Crop Production and Reduce Poverty Across the Distribution of Smallholders in Africa? Quantile Regression Results from Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126742, International Association of Agricultural Economists.
  9. Fisher, Monica & Kandiwa, Vongai, 2014. "Can agricultural input subsidies reduce the gender gap in modern maize adoption? Evidence from Malawi," Food Policy, Elsevier, vol. 45(C), pages 101-111.
  10. Mapila, Mariam A. T. J., 2013. "The impact of alternative input subsidy exit strategies on Malawi’s maize commodity market:," IFPRI discussion papers 1278, International Food Policy Research Institute (IFPRI).
  11. Mkwara, Bentry, 2013. "To what extent do fertiliser subsidies improve household income and reduce poverty? The case of Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(4), October.

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