Input subsidies and their effect on cropland allocation, agricultural productivity, and child nutrition: evidence from Malawi

Type Working Paper
Title Input subsidies and their effect on cropland allocation, agricultural productivity, and child nutrition: evidence from Malawi
Author(s)
Publication (Day/Month/Year) 2013
URL http://aladinrc.wrlc.org/bitstream/handle/1961/15104/Karamba_american_0008E_10495display.pdf?sequenc​e=1
Abstract
Governments in sub-Saharan Africa have introduced a new brand of agricultural
input subsidies which has led to their resurgent interest. This dissertation is composed of
three essays evaluating the effects of Malawi’s Farm Input Subsidy Program on cropland
allocation decisions, agricultural productivity, and child nutrition. Essay 1 explores the
impact of input subsidies on cropland allocation decisions among rural farm households in
Malawi using the nationally-representative Third Integrated Household Survey. To control
for the possible endogeneity of program participation, an instrumental variable approach is
employed. The results indicate that program participation leads to a substantial decrease
in the share of land allocated to maize, which suggests intensification in the production of
maize. Participation also leads to an increase in the share of land allocated to tobacco and
legumes, which suggests a shift toward the production of cash crops and greater cultivation
of secondary intercrops. In addition, participation is associated with increased agricultural
productivity.

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