IDEAS home Printed from
   My bibliography  Save this paper

What are the Enduring Effects of Fertilizer Subsidy Programs on Recipient Farm Households? Evidence from Malawi


  • Ricker-Gilbert, Jacob
  • Jayne, Thomas S.


This article uses panel data from Malawi to measure how receiving subsidized fertilizer in the current year and in previous years affects several different measures of household well-being. Our model accounts for potential endogeneity of subsidized fertilizer due to the non-random way in which it is distributed to recipients. Results indicate that receiving subsidized fertilizer in a given year raises maize and tobacco production as well as the net value of rainy-season crop production in that year. Receipt of subsidized fertilizer over the prior three seasons also has a significant positive effect on current year maize production. However, receipt of subsidized fertilizer in the prior three consecutive years has no discernable effect on the net-value of total crop production in the current year. Moreover, we find no evidence that prior or current receipt of subsidized fertilizer contributes to off-farm or total household income. Lastly, we find no significant evidence that receiving subsidized fertilizer raises farmers’ livestock and durable asset wealth. Potential general equilibrium benefits resulting from the subsidy program cannot be discounted, but the direct comparison of recipient and non-recipient households indicates that enduring effects of the subsidy beyond the year of receipt apply to maize production only and not to overall household income or asset wealth.

Suggested Citation

  • Ricker-Gilbert, Jacob & Jayne, Thomas S., 2011. "What are the Enduring Effects of Fertilizer Subsidy Programs on Recipient Farm Households? Evidence from Malawi," Staff Paper Series 109593, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midasp:109593
    DOI: 10.22004/ag.econ.109593

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
    2. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    3. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    International Development; Political Economy;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:midasp:109593. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.