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The impact of farm input subsidies on maize marketing in Malawi

Sibande, Lonester Chanthenda, Bailey, Alastair, Davidova, Sophia M. (2017) The impact of farm input subsidies on maize marketing in Malawi. Food Policy, 69 . pp. 190-206. ISSN 0306-9192. (doi:10.1016/j.foodpol.2017.04.001) (KAR id:61701)

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This paper investigates the effects of subsidised fertilizer on marketing of maize in Malawi. It uses the nationally representative two-wave Integrated Household Panel Survey (IHPS) data of 2010 and 2013. The results suggest that subsidised fertilizer on average increases farmers’ maize market participation as sellers, total quantity of maize sold, and maize commercialisation. In addition, participation in subsidised fertilizer programme is found to increase the probability of farmers to be net sellers and increases net quantity of maize sold. However, the study finds no evidence of effect on net quantity of maize bought and on household maize self-sufficiency. These results suggest that the farm input subsidy programme has contributed toward an increased level of maize market supply engagement for small farmers and in this sense, the policy has the potential to provide the wider external benefits. Furthermore, the results have implication on the sustainability of the subsidy programme, policy formulation and design of programmes for the agricultural sector and small farmers in developing countries.

JEL Classification: Q1; Q13; Q18

Item Type: Article
DOI/Identification number: 10.1016/j.foodpol.2017.04.001
Uncontrolled keywords: Farm input subsidy; Maize marketing; Malawi
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Sophia Davidova
Date Deposited: 11 May 2017 15:13 UTC
Last Modified: 16 Feb 2021 13:45 UTC
Resource URI: (The current URI for this page, for reference purposes)
Bailey, Alastair:
Davidova, Sophia M.:
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