The impact of farm input subsidies on maize marketing in Malawi
Lonester Sibande,
Alastair Bailey and
Sophia Davidova
Food Policy, 2017, vol. 69, issue C, 190-206
Abstract:
This paper investigates the effects of subsidised fertilizer on marketing of maize in Malawi. It uses the nationally representative two-wave Integrated Household Panel Survey (IHPS) data of 2010 and 2013. The results suggest that subsidised fertilizer on average increases farmers’ maize market participation as sellers, total quantity of maize sold, and maize commercialisation. In addition, participation in subsidised fertilizer programme is found to increase the probability of farmers to be net sellers and increases net quantity of maize sold. However, the study finds no evidence of effect on net quantity of maize bought and on household maize self-sufficiency. These results suggest that the farm input subsidy programme has contributed toward an increased level of maize market supply engagement for small farmers and in this sense, the policy has the potential to provide the wider external benefits. Furthermore, the results have implication on the sustainability of the subsidy programme, policy formulation and design of programmes for the agricultural sector and small farmers in developing countries.
Keywords: Farm input subsidy; Maize marketing; Malawi (search for similar items in EconPapers)
JEL-codes: Q1 Q13 Q18 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (26)
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Working Paper: The impact of farm input subsidies on maize marketing in Malawi (2015) 
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:69:y:2017:i:c:p:190-206
DOI: 10.1016/j.foodpol.2017.04.001
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