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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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    File URL: http://hdl.handle.net/10.1093/ajae/aaw090
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    Cited by:

    1. Zhu, Wei & Qi, Lixia & Wang, Ruime, 2021. "Impact of Market Price Support Measures on Chemical Fertilizer Use in China," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(1), January.
    2. Jaerim Choi & Sunghun Lim, 2023. "Tariffs, agricultural subsidies, and the 2020 US presidential election," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1149-1175, August.
    3. Yoko Kijima, 2022. "Effect of Nigeria’s e-voucher input subsidy program on fertilizer use, rice production, and household income," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(4), pages 919-935, August.
    4. Xavier Giné & Shreena Patel & Bernardo Ribeiro & Ildrim Valley, 2022. "Efficiency and equity of input subsidies: Experimental evidence from Tanzania†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1625-1655, October.
    5. Ole Magnus Theisen & Håvard Strand & Gudrun Østby, 2020. "Ethno-political favouritism in maternal health care service delivery: Micro-level evidence from sub-Saharan Africa, 1981–2014," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(1), pages 3-27, March.
    6. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    7. Lindikaya W. Myeki & Yonas T. Bahta & Nicolette Matthews, 2022. "Exploring the Growth of Agricultural Productivity in AFRICA: A Färe-Primont Index Approach," Agriculture, MDPI, vol. 12(8), pages 1-17, August.
    8. Hossain, Marup & Mabiso, Athur & Garbero, Alessandra, 2022. "Matching grants and economic activities among horticultural entrepreneurs: Long-term evidence from Rwanda," World Development, Elsevier, vol. 150(C).
    9. Jongwoo Kim & Nicole M. Mason & David Mather & Felicia Wu, 2021. "The effects of the national agricultural input voucher scheme (NAIVS) on sustainable intensification of maize production in Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 857-877, September.
    10. Hambulo Ngoma & Henry Machina & Auckland N. Kuteya, 2021. "Can agricultural subsidies reduce gendered productivity gaps? Panel data evidence from Zambia," Development Policy Review, Overseas Development Institute, vol. 39(2), pages 303-323, March.
    11. Yangchuan Wang & Olga Isengildina‐Massa & Shamar Stewart, 2023. "US grass‐fed beef premiums," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 664-690, July.
    12. Kwon, Daye & Myers, Robert J. & Mason, Nicole M., 2022. "How do input subsidy programs affect smallholder households’ dietary diversity? Evidence from Zambia," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322493, Agricultural and Applied Economics Association.
    13. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    14. Camara, Alhassane & Savard, Luc, 2023. "Impact of agricultural input subsidy policy on market participation and income distribution in Africa: A bottom-up/top-down approach," Economic Modelling, Elsevier, vol. 129(C).
    15. Nicole M. Mason & Ayala Wineman & Solomon T. Tembo, 2020. "Reducing poverty by ‘ignoring the experts’? Evidence on input subsidies in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 1157-1172, October.
    16. Morgan, Stephen N. & Mason, Nicole M. & Levine, N. Kendra & Zulu-Mbata, Olipa, 2019. "Dis-incentivizing sustainable intensification? The case of Zambia’s maize-fertilizer subsidy program," World Development, Elsevier, vol. 122(C), pages 54-69.
    17. Karl Pauw, 2022. "A review of Ghana’s planting for food and jobs program: implementation, impacts, benefits, and costs," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1321-1335, October.
    18. Mwale, Martin Limbikani, 2023. "Do agricultural subsidies matter for women’s attitude towards intimate partner violence? Evidence from Malawi," Economic Modelling, Elsevier, vol. 128(C).
    19. Dyzenhaus, Alex, 2021. "Patronage or policy? The politics of property rights formalization in Kenya," World Development, Elsevier, vol. 146(C).
    20. Mason, N. & Morgan, S. & Levine, N.K. & Zulu-Mbata, O., 2018. "Dis-incentivizing sustainable intensification? The case of Zambia s fertilizer subsidy program," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277491, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Fertilizer subsidy programs; fractional response; political economy; sub-Saharan Africa; Zambia;
    All these keywords.

    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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