Who is benefiting from fertilizer subsidies in Indonesia ?
AbstractUsing the Agricultural Census 2003 and the Rice Household Survey 2008 for Indonesia, this paper analyzes the distribution of benefits from fertilizer subsidies and their impact on rice production. The findings suggest that most farmers benefit from fertilizer subsidies; however, the 40 percent largest farmers capture up to 60 percent of the subsidy. The regressive nature of the fertilizer subsidies is in line with research carried out in other countries, the result of larger farms using a larger volume of fertilizer. This paper confirms that fertilizer used in adequate quantities has a positive and significant impact on rice yields, but it also provides evidence that over-using fertilizer has an adverse impact on yields (an inverted U-curve relationship).
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5758.
Date of creation: 01 Aug 2011
Date of revision:
Fertilizers; Crops&Crop Management Systems; Economic Theory&Research; Regional Economic Development; Rural Poverty Reduction;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-08-22 (Agricultural Economics)
- NEP-ALL-2011-08-22 (All new papers)
- NEP-SEA-2011-08-22 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ramón López, 2004. "Effect of the Structure of Rural Public Expenditures on Agricultural Growth and Rural Poverty in Latin America," IDB Publications 50958, Inter-American Development Bank.
- 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.
- Fuglie, Keith O., 2003.
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2003 Conference (47th), February 12-14, 2003, Fremantle, Australia
57868, Australian Agricultural and Resource Economics Society.
- Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 40(2), pages 209-225.
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