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The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia


  • Tomoya Matsumoto

    (National Graduate Institute for Policy Studies)

  • Takashi Yamano

    (Foundation for Advanced Studies on International Development
    National Graduate Institute for Policy Studies)


In this chapter, we evaluate the impact of fertilizer credit on crop choice, crop yield, and income using two-year panel data of 420 households in rural Ethiopia. The fertilizer credit is found to increase input application for crop production. As a consequence, it has a substantial impact on the yield of teff. We also find that the impact on net crop income per cultivated area and also on per capita income is marginal because of the low profitability due to the low output price and high input cost of agricultural production.

Suggested Citation

  • Tomoya Matsumoto & Takashi Yamano, 2010. "The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia," GRIPS Discussion Papers 10-23, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:10-23

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    Cited by:

    1. Keita, Moussa, 2012. "Impact of subsidized inputs credits on land allocation and market-oriented agriculture in rural households in Mali," MPRA Paper 57542, University Library of Munich, Germany.
    2. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    3. Barrett,Christopher B. & Sheahan,Megan Britney & Barrett,Christopher B. & Sheahan,Megan Britney, 2014. "Understanding the agricultural input landscape in Sub-Saharan Africa : recent plot, household, and community-level evidence," Policy Research Working Paper Series 7014, The World Bank.
    4. Ayalew, Hailemariam & Chamberlin, Jordan & Newman, Carol, 2022. "Site-specific agronomic information and technology adoption: A field experiment from Ethiopia," Journal of Development Economics, Elsevier, vol. 156(C).
    5. Martey, Edward & Kuwornu, John K.M. & Adjebeng-Danquah, Joseph, 2019. "Estimating the effect of mineral fertilizer use on Land productivity and income: Evidence from Ghana," Land Use Policy, Elsevier, vol. 85(C), pages 463-475.
    6. Mahama, T.A.-K. & Maharjan, K.L. & Issahaku, Z.A., 2018. "An analysis of Maize Yield Response to Agrochemical Expenditure using the Generalized Propensity Score (GPS) matching approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277072, International Association of Agricultural Economists.
    7. Raut, Nani & Sitaula, Bishal K., 2012. "Assessment of Fertilizer Policy, Farmers’ Perceptions and Implications for Future Agricultural Development in Nepal," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 1(2).
    8. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.

    More about this item


    Input Credit; Fertilizer Policy; Agricultural Technology; Crop Production; Ethiopia;
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