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Fertilizer subsidy and agricultural productivity in Senegal

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  • Seck, Abdoulaye

Abstract

In a consistent effort to raise productivity and unlock the unrivaled economic and social potentials of the agricultural sector, the Senegalese government, as many of its African counterparts, has designed and implemented heavy subsidy programs, some of which targeting the use of inputs. This paper assesses the potential impact of fertilizer subsidy on farmers' productivity. Using a farm-level survey data from the Senegal River Valley, the paper develops a two-part methodology: first the data envelopment analysis is used to generate efficiency scores, and then the latter is related to the subsidy program using an endogenous treatment-regression model that accounts for potential endogeneity and self-selectivity issues. The results indicate that the subsidy programs seem to be working, as they appear to be associated with increased efficiency. The results also suggest ways to improve the effectiveness of the subsidy program as well as additional policy options to further unlock the agricultural potentials.

Suggested Citation

  • Seck, Abdoulaye, 2016. "Fertilizer subsidy and agricultural productivity in Senegal," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246276, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:246276
    DOI: 10.22004/ag.econ.246276
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    References listed on IDEAS

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    1. World Bank, 2010. "Zambia - Impact Assessment of the Fertilizer Support Program : Analysis of Effectiveness and Efficiency," World Bank Publications - Reports 2878, The World Bank Group.
    2. Nicola Cetorelli & Philip E. Strahan, 2006. "Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets," Journal of Finance, American Finance Association, vol. 61(1), pages 437-461, February.
    3. Nicole M. Mason & Thomas S. Jayne, 2014. "Fertiliser subsidies and smallholder commercial fertiliser purchases: crowding out, leakage, and policy implications for Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(2), pages 527-528, June.
    4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    5. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
    6. Michael Morris & Valerie A. Kelly & Ron J. Kopicki & Derek Byerlee, 2007. "Fertilizer Use in African Agriculture : Lessons Learned and Good Practice Guidelines," World Bank Publications - Books, The World Bank Group, number 6650, December.
    7. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, December.
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    Cited by:

    1. Voss, Rachel C. & Jansen, Tony & Mané, Bacary & Shennan, Carol, 2021. "Encouraging technology adoption using ICTs and farm trials in Senegal: Lessons for gender equity and scaled impact," World Development, Elsevier, vol. 146(C).
    2. repec:mth:jas888:v:7:y:2019:i:1:p:82-102 is not listed on IDEAS

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    Keywords

    Agricultural Finance; Land Economics/Use; Research and Development/Tech Change/Emerging Technologies;
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