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Supply response under market liberalisation: A case study of Malawian agriculture

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  • Kumaresan Govindan
  • Suresh Chandra Babu

Abstract

In order to analyse the effects of policy reforms, output supply and factor demand responses to input and output prices for Malawian agriculture are estimated in this article in a multiple-output, multiple-input framework. The implications of various structural adjustment policies implemented in Malawi are analysed using the model results for their impact on the smallholder agricultural sector. The results of the analysis indicate that removal of fertiliser subsidy - a major component of market reform policies - does not substantially reduce the production of maize, the major staple food in Malawi. However, when implemented in appropriate sequence along with other output market liberalisation policies and increased investment in infrastructure, such a policy is likely to increase the productivity of smallholder agriculture.

Suggested Citation

  • Kumaresan Govindan & Suresh Chandra Babu, 2001. "Supply response under market liberalisation: A case study of Malawian agriculture," Development Southern Africa, Taylor & Francis Journals, vol. 18(1), pages 93-106.
    • Handle: RePEc:taf:deveza:v:18:y:2001:i:1:p:93-106
    DOI: 10.1080/03768350120043349
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    References listed on IDEAS

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    1. Knudsen, O. & Nash, J., 1990. "Redefinig The Role Of Governement In Agriculture For The 1990s," World Bank - Discussion Papers 105, World Bank.
    2. Paul Mosley, 1993. "Policy and Capital Market Constraints to the African Green Revolution: A study of maize and sorghum yields in Kenya, Malawi and Zimbabwe," Papers iopeps93/40, Innocenti Occasional Papers, Economic Policy Series.
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    Cited by:

    1. Akhter Ali & Dil Bahadur Rahut & Muhammad Imtiaz, 2019. "Affordability Linked with Subsidy: Impact of Fertilizers Subsidy on Household Welfare in Pakistan," Sustainability, MDPI, vol. 11(19), pages 1-12, September.
    2. David J. Hemming & Ephraim W. Chirwa & Andrew Dorward & Holly J. Ruffhead & Rachel Hill & Janice Osborn & Laurenz Langer & Luke Harman & Hiro Asaoka & Chris Coffey & Daniel Phillips, 2018. "Agricultural input subsidies for improving productivity, farm income, consumer welfare and wider growth in low‐ and lower‐middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 14(1), pages 1-153.
    3. Kherallah, Mylène & Kumaresan, Govindan, 1997. "The sequencing of agricultural market reforms in Malawi," MTID discussion papers 13, International Food Policy Research Institute (IFPRI).
    4. Andrew Dorward & Philip D. Roberts & Cambria Finegold & David J. Hemming & Ephraim Chirwa & Holly J. Wright & Rachel K. Hill & Janice Osborn & Julien Lamontagne‐Godwin & Luke Harman & Martin J. Parr, 2014. "PROTOCOL: Agricultural Input Subsidies for improving Productivity, Farm Income, Consumer Welfare and Wider Growth in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 10(1), pages 1-45.
    5. Ryan, James G., 1999. "Assessing the impact of policy research and capacity building by IFPRI in Malawi," Impact assessments 11, International Food Policy Research Institute (IFPRI).

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