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The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program

Channing Arndt (), Karl Pauw and James Thurlow

American Journal of Agricultural Economics, 2016, vol. 98, issue 3, 962-980

Abstract: We estimate the impact of Malawi's Farm Input Subsidy Program using an economy-wide approach. This approach yields benefit-cost ratios about 60% higher than existing partial equilibrium studies, a result of our accounting for indirect benefits. Fertilizer response rates remain the determining parameter for benefit-cost ratio levels. Even with lower-end response rates, the program is pro-poor and generates double-dividends through higher and more drought-resilient yields. Overall, for macro-economically significant programs, our approach strongly complements survey-based evaluations. For Malawi, our results buttress arguments for a focus on program improvements.

Date: 2016
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Related works:
Working Paper: The Economywide Impacts and Risks of Malawi’s Farm Input Subsidy Program (2014) Downloads
Working Paper: The Economywide Impacts and Risks of Malawi's Farm Input Subsidy Programme (2014) Downloads
Working Paper: The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program (2013) Downloads
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