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Repercussions of Fertilizer Subsidy Programs on Private Sector Input Retailers: Evidence from Malawi and Proposal for Further Research

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  • Fitzpatrick, Natalie Bess

Abstract

This paper looks at the experiences of agricultural input retailers in Malawi as a result of the Agricultural Input Subsidy Program. In particular, it focuses on the impact of excluding private sector retailers from participation in the subsidy program. Using a difference-in-difference approach to modeling fertilizer sales, it attempts to evaluate how retailers who were allowed to participate for part of the duration of the program but were then excluded experienced this policy change in comparison to retailers who were not allowed to participate at any point in the program. Furthermore, by looking at survey attrition over a two-year period, this paper looks at the evidence for and against the case that the subsidy program is driving private sector retailers out of business entirely. Due to known problems with the data and the results of testing done in the process of this research, this paper goes on to discuss the ideal methods that could produce the data needed to more accurately and comprehensively address the questions discussed in the first parts of the paper.

Suggested Citation

  • Fitzpatrick, Natalie Bess, 2012. "Repercussions of Fertilizer Subsidy Programs on Private Sector Input Retailers: Evidence from Malawi and Proposal for Further Research," Graduate Research Master's Degree Plan B Papers 141117, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midagr:141117
    DOI: 10.22004/ag.econ.141117
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    References listed on IDEAS

    as
    1. Minde, I., 2008. "Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya," IWMI Working Papers H042064, International Water Management Institute.
    2. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2009. "Do Fertilizer Subsidies Affect the Demand for Commercial Fertilizer? An Example from Malawi," 2009 Conference, August 16-22, 2009, Beijing, China 51606, International Association of Agricultural Economists.
    4. Xu, Zhiying & Jayne, Thomas S. & Govereh, Jones, 2006. "Input Subsidy Programs and Commercial Market Development: Modeling Fertilizer Use Decisions in a Two-Channel Marketing System," 2006 Annual meeting, July 23-26, Long Beach, CA 21270, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    1. Kaiyatsa, Stevier & Jumbe, Charles & Ricker-Gilbert, Jacob, 2017. "Supply-side Crowding-out and Crowding-in Effects of Malawi’s Farm Input Subsidy Program on Private-sector Input Marketing: A Quasi-experimental Field Study," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258135, Agricultural and Applied Economics Association.
    2. Ricker-Gilbert, Jacob & Lunduka, Rodney & Shively, Gerald & Jayne, Thom, 2014. "Improving the Effectiveness of Malawi’s FISP," Food Security Collaborative Policy Briefs 234944, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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