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The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia

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  • Nicole M. Mason
  • Thomas S. Jayne
  • Nicolas van de Walle

Abstract

Fertilizer subsidy programs have re-emerged as popular policy tools in sub-Saharan Africa. Despite a burgeoning body of literature on program impacts, the political economy of the programs remains poorly understood. In particular, there is a dearth of empirical evidence to support or refute the conventional wisdoms that governments systematically target subsidized inputs to certain areas based on past voting patterns and that fertilizer subsidies win votes. This article discusses the theoretical links between government targeting of subsidized fertilizer and voter behavior, then uses panel data from Zambia to empirically test these conventional wisdoms. Results suggest that Zambia’s Movement for Multi-Party Democracy governments targeted more subsidized fertilizer to households in areas where it had strong support in the previous presidential election. However, contrary to conventional wisdom, marginal changes in the scale or coverage of the fertilizer subsidy program had no statistically significant effect on the share or number of votes won by incumbent presidents.

Suggested Citation

  • Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    • Handle: RePEc:oup:ajagec:v:99:y:2017:i:3:p:705-731.
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    References listed on IDEAS

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    1. 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.
    2. Channing Arndt & Karl Pauw & James Thurlow, 2016. "The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(3), pages 962-980.
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    Keywords

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    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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