Fertiliser Subsidy and Agricultural Productivity in Senegal

18 Pages Posted: 13 Sep 2017

See all articles by Abdoulaye Seck

Abdoulaye Seck

Université Cheikh Anta Diop (UCAD) - Economics Department

Date Written: September 2017

Abstract

This paper tackles one of the most complex and multifaceted agricultural policy decisions faced by African governments; that is, whether it makes sense to subsidise fertilisers. It combines a data envelopment analysis to compute efficiency scores and regression analyses that deal with self‐selectivity and endogeneity issues to examine the productive efficiency of farmers who benefited from the subsidy programme in the very atypical irrigated system of the Senegal River Valley. The results based on farm‐level data indicate that the subsidy programme seems to be working, as it appears to be associated with increased efficiency; hence, providing empirical support to the political will to revamp subsidy programmes. The results also suggest various ways to improve the effectiveness of the subsidy programme in conjunction with additional policy options to further unlock the agricultural potentials of the region.

Suggested Citation

Seck, Abdoulaye, Fertiliser Subsidy and Agricultural Productivity in Senegal (September 2017). The World Economy, Vol. 40, Issue 9, pp. 1989-2006, 2017, Available at SSRN: https://ssrn.com/abstract=3036201 or http://dx.doi.org/10.1111/twec.12487

Abdoulaye Seck (Contact Author)

Université Cheikh Anta Diop (UCAD) - Economics Department ( email )

Fann
Dakar
Senegal

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