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Disrupting Demand for Commercial Seed: Input Subsidies in Malawi and Zambia

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  • Mason, Nicole M.
  • Ricker-Gilbert, Jacob

Abstract

Input subsidy programs that provide inorganic fertilizer and improved maize seed to small farmers below market rates are currently receiving a great deal of support as a sustainable strategy to foster an African Green Revolution. In recent years numerous countries in Sub-Saharan Africa (SSA) including Ghana, Kenya, Malawi, Mali, Senegal, Tanzania, and Zambia have implemented such programs at substantial cost to government and donor budgets. For example, in 2008 Malawi spent roughly 70% of the Ministry of Agriculture’s budget or just over 16% of the government’s total budget subsidizing fertilizer and seed. In Zambia between 2004 and 2011, an average of 40% of the government’s agricultural sector budget was devoted to fertilizer and maize seed subsidies each year.

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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Food Security Collaborative Working Papers with number 123554.

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Date of creation: Apr 2012
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Handle: RePEc:ags:midcwp:123554

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Keywords: Malawi; Zambia; seed; input subsidies; Agricultural and Food Policy; Food Security and Poverty;

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References

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  1. 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.
  2. 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.
  3. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
  4. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
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  6. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  7. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  8. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
  9. Megill, David J., 2005. "Recommendations for Adjusting Weights for Zambia Post-Harvest Survey Data Series and Improving Estimation Methodology for Future Surveys," Food Security Collaborative Working Papers 54470, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  10. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  11. Banful, Afua Branoah, 2011. "Old Problems in the New Solutions? Politically Motivated Allocation of Program Benefits and the "New" Fertilizer Subsidies," World Development, Elsevier, vol. 39(7), pages 1166-1176, July.
  12. Vella, Francis, 1993. "A Simple Estimator for Simultaneous Models with Censored Endogenous Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(2), pages 441-57, May.
  13. Banful, Afua Branoah, 2010. "Old problems in the new solutions?," IFPRI discussion papers 1002, International Food Policy Research Institute (IFPRI).
  14. 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.
  15. Dorward, Andrew & Chirwa, Ephraim & Kelly, Valerie A. & Jayne, Thomas S. & Slater, Rachel & Boughton, Duncan, 2008. "Evaluation Of The 2006/7 Agricultural Input Subsidy Programme, Malawi. Final Report," Food Security Collaborative Working Papers 97143, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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Citations

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Cited by:
  1. Tripp, Robert & Mensah-Bonsu, Akwesi, 2013. "Ghana's commercial seed sector: New incentives or continued complacency?:," GSSP working papers 32, International Food Policy Research Institute (IFPRI).
  2. 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.
  3. Holden, Stein, 2013. "Input subsidies and demand for improved maize: Relative prices and household heterogeneity matter!," CLTS Working Papers 6/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  4. Smale, Melinda & Birol, Ekin, 2013. "Smallholder demand for maize hybrids and selective seed subsidies in Zambia," HarvestPlus Working Papers 9, International Food Policy Research Institute (IFPRI).
  5. Tschirley, David & Theriault, Veronique, 2013. "On the Institutional Details that Mediate the Impact of Cash Crops on Food Crop Intensification: The Case of Cotton," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151263, Agricultural and Applied Economics Association.
  6. Ricker-Gilbert, Jacob & Jones, Michael, 2012. "Does Access to Storage Protectant Increase Smallholder Adoption of Improved Maize Seed? Insights from Malawi," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124658, Agricultural and Applied Economics Association.
  7. 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.
  8. Hamazakaza, Petan & Smale, Melinda & Kasalu, Helen, 2013. "The Impact of Hybrid Maize on Smallholder Livelihoods in Zambia:Findings of a Household Survey in Katete, Mkushi, and Sinazongwe Districts," Food Security Collaborative Working Papers 148808, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. Watson II, Derrill D., 2013. "Political economy synthesis: The food policy crisis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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