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An analysis of Maize Yield Response to Agrochemical Expenditure using the Generalized Propensity Score (GPS) matching approach

T.A.-K. Mahama, Keshav Maharjan () and Z.A. Issahaku

No 277072, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Agrochemical expenditure is an important component of recent farming activities following the decreasing soil fertility. Yet, many contemporary studies have not attempted an evaluation of the impact of this expenditure on crop yield. This study uses primary observational data of 299 rural farmers gathered through a simple random sampling technique in Ghana to determine the impact of agrochemical expenditure on maize yield. The analysis is based on the Generalised Propensity Score matching technique; a continuous treatment causal inference model with many of the attractive properties of the standard propensity score matching. The results of the analysis show that agrochemical expenditure has a positive impact on maize yield after a minimum threshold. We also found this marginal factor productivity to be increasing at a decreasing rate after the rate of increase attains a maximum. Thus, the relationship between agrochemical expenditure and maize yield is nonlinear and this nonlinearity seems to be largely explained by the expenditure on mineral fertiliser. Consequently, we recommend that input credit schemes of government should be guided by this returns to expenditure dynamics in deciding optimal support packages to farmers. Acknowledgement :

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277072

DOI: 10.22004/ag.econ.277072

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