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Do Public Transfers Discourage Farmer Participation in Subsistence Crop Production? Empirical Evidence from Botswana

Author

Listed:
  • Khaufelo R. Lekobane
  • Tebogo B. Seleka

    (Botswana Institute for Development Policy Analysis)

Abstract

We analyse the impact of public food and cash transfers on farmer participation in Botswana’s subsistence arable agriculture. The results indicate that publicly provided social pensions and food packages (rations) reduce the probability of participation in subsistence crop farming. Engagement in paid off-farm employment, which is sometimes facilitated through a public works programme (PWP), also discourages farmer participation in the subsistence economy. Therefore, public food and cash transfers and the PWP yield work disincentive effects in Botswana’s subsistence agriculture. This is because transfers are usually consistent and regular in Botswana, impacting on household behaviour. The design of social protection policies should therefore consider such potential disincentive effects on the agricultural sector.

Suggested Citation

  • Khaufelo R. Lekobane & Tebogo B. Seleka, 2011. "Do Public Transfers Discourage Farmer Participation in Subsistence Crop Production? Empirical Evidence from Botswana," Working Papers 29, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:29
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/104
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    Cited by:

    1. World Bank, 2015. "Botswana Agriculture Public Expenditure Review 2000-2013," World Bank Publications - Reports 22073, The World Bank Group.

    More about this item

    Keywords

    Botswana; Subsistence agriculture; Public and private transfers; Work disincentive; Dependency; Social safety nets; Poverty;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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