Measuring the Impacts of Malawi's Farm Input Subsidy Program

38 Pages Posted: 11 Jun 2011

See all articles by Christopher Chibwana

Christopher Chibwana

United States Agency for International Development (USAID) - USAID/Malawi

Monica Fisher

Oregon State University - Department of Applied Economics

Charles Jumbe

affiliation not provided to SSRN

William A. Masters

Tufts University - Friedman School of Nutrition Science and Policy; Tufts University - Department of Economics

Gerald Shively

Purdue University

Date Written: September 10, 2010

Abstract

We measure the impacts of Malawi’s 2009 Farm Input Subsidy Program (FISP) on fertilizer use and maize yields in central and southern Malawi. Using three rounds of panel data and instrumental variables regression strategies to control for endogenous selection into the subsidy program we find positive and statistically significant correlations between participation in the FISP and fertilizer use intensity. Fertilizer use is found to be higher among households that plant improved maize varieties than among those that plant traditional varieties. Results are broadly robust to the inclusion of previous fertilizer intensity to control for household-specific differences in fertilizer use. We combine these results with those from a maize production function to calculate program-generated changes in average maize availability, accounting for estimated subsidy-induced changes in crop area. Our findings have implications for the way input subsidy programs are designed and implemented.

Suggested Citation

Chibwana, Christopher and Fisher, Monica and Jumbe, Charles and Masters, William A. and Shively, Gerald, Measuring the Impacts of Malawi's Farm Input Subsidy Program (September 10, 2010). Available at SSRN: https://ssrn.com/abstract=1860867 or http://dx.doi.org/10.2139/ssrn.1860867

Christopher Chibwana

United States Agency for International Development (USAID) - USAID/Malawi ( email )

P.O. Box 30455
Lilongwe
Malawi

Monica Fisher

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States

Charles Jumbe

affiliation not provided to SSRN ( email )

William A. Masters

Tufts University - Friedman School of Nutrition Science and Policy ( email )

150 Harrison Avenue
Boston, MA 02111
United States

HOME PAGE: http://sites.tufts.edu/willmasters

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States

Gerald Shively (Contact Author)

Purdue University ( email )

610 Purdue Mall
West Lafayette, IN 47907
United States

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