Abstract

http://ssrn.com/abstract=1910504
 
 

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Who is Benefiting from Fertilizer Subsidies in Indonesia?


Camilo Gomez


World Bank

Dwi Endah Abriningrum


World Bank

Enrique Blanco Armas


World Bank

Muhammad Firdaus


affiliation not provided to SSRN

August 1, 2011

World Bank Policy Research Working Paper No. 5758

Abstract:     
Using the Agricultural Census 2003 and the Rice Household Survey 2008 for Indonesia, this paper analyzes the distribution of benefits from fertilizer subsidies and their impact on rice production. The findings suggest that most farmers benefit from fertilizer subsidies; however, the 40 percent largest farmers capture up to 60 percent of the subsidy. The regressive nature of the fertilizer subsidies is in line with research carried out in other countries, the result of larger farmsusing a larger volume of fertilizer. This paper confirms that fertilizer used in adequate quantities has a positive and significant impact on rice yields, but it also provides evidence that over-using fertilizer has an adverse impact on yields (an inverted U-curve relationship).

Number of Pages in PDF File: 39

Keywords: Fertilizers, Crops & Crop Management Systems, Economic Theory & Research, Regional Economic Development, Rural Poverty Reduction

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Date posted: August 16, 2011  

Suggested Citation

Gomez, Camilo and Abriningrum, Dwi Endah and Blanco Armas, Enrique and Firdaus, Muhammad, Who is Benefiting from Fertilizer Subsidies in Indonesia? (August 1, 2011). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2011. Available at SSRN: http://ssrn.com/abstract=1910504

Contact Information

Camilo Gomez (Contact Author)
World Bank ( email )
1818 H Street, NW
Washington, DC 20433
United States
Dwi Endah Abriningrum
World Bank ( email )
1818 H Street, NW
Washington, DC 20433
United States
Enrique Blanco Armas
World Bank ( email )
1818 H Street, NW
Washington, DC 20433
United States
Muhammad Firdaus
affiliation not provided to SSRN
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