Initial Conditions and Changes in Commercial Fertilizers under the Farm Input Subsidy Programme in Malawi: Implications for Graduation

Book English OPEN
Dorward, Andrew ; Chirwa, Ephraim ; Matita, Mirriam (2011)
  • Publisher: Future Agriculutres Consortium
  • Subject: 3902 | 3900

The government of Malawi has been implementing agricultural input subsidies since 2005/06 as an intervention aimed at improving food security among resource poor smallholder farmers. Although the issue of graduation is not articulated in the design of the programme, this study investigates the determinants of changes in the demand for commercial fertilizers in the presence of the subsidy programme. The increase in purchase of commercial fertilizers by subsidized households may indicate prospects of graduation from the subsidy programme in future. Using panel data between the 2004/05 and 2008/09 seasons, we find that 6 percent of households that did not purchase ommercial fertilizer in 2004/05 could afford to purchase fertilizers commercially in subsidy years. Relative to those that never purchase fertilizers, these households tend to have higher per capita expenditure and higher values of durable assets. The econometric results show that initial conditions matter, with initial household size, per capita expenditure, agricultural output, and existence of\ud business enterprise all playing a positive role in the changes in demand for commercial fertilizer. We also find that commercial fertilizers decreases with initial commercial fertilizers, land holdings and existence of ADMARC. The results suggest that the poor may have low prospects of graduation and less involvement of ADMARC and greater participation of the private sector can help in improving the ‘potential graduation conditions’.
  • References (26)
    26 references, page 1 of 3

    Adato, M., Carter, M.R. and May, J. (2006)'Exploring PovertyTraps and Social Exclusion in South Africa Using Qualitative and Quantitative Data', Journal of Development Studies, 42(2): 226-247.

    Balisacan, A. M. and Fuwa, N. (2004) 'Going beyond CrossCountry Averages: Growth, Inequality and Poverty Reduction in the Philippines', World Development, 32(11): 1891-1907.

    Barrett, C.B., Marenya, P.P., McPeak, J., Minten, B., Murithi, F., Olouch-Kosura,W., Place, F., Randrianarisoa, J.G., Rasambainarivo, J. and Wangila, J. (2006) 'Welfare Dynamics in Rural Kenya and Madagascar', Journal of Development Studies, 42(2): 248-277.

    Booth, A. (1999)'Initial Conditions and Miraculous Growth:Why is South East Asia Diefrent FromTaiwan and South Korea?',World Development, 27(2): 301-321.

    Carter, M.R and Barrett, C.B. (2006) 'The Economics of poverty Traps and Persistent Poverty: An Asset-Based Approach', Journal of Development Studies, 42(2): 178-199.

    Carter, M.R. and May, J. (2001) 'One Kind of Freedom: Poverty Dynamics in Post-apartheid South Africa', World Development, 29(12): 1987-2006.

    Chirwa, E., Matita, M. and Dorward, A. (2011a) Factors Inuflencing Access to Agricultural Input Subsidy Coupons in Malawi. FAC Working Paper (unpublished), Brighton, UK: Future Agricultures Consortium.

    Chirwa, E., Dorward, A. and Matita, M. (2011b) Conceptualising Graduation from Agricultural Input Subsidies in Malawi. FAC Working Paper (unpublished), Brighton, UK: Future Agricultures Consortium.

    CPRC (Chronic Poverty Research Centre) (2007) Tackling Obstacles to Social Protection for Chronically Poor People. CPRC Policy Brief No. 3, Manchester, UK: Chronic Poverty Research Centre.

    Deininger, K. and Okidi, J. (2003)'Growth and Poverty Reduction in Uganda, 1999-2000: Panel Data Evidence', Development Policy Review, 21(4): 481-509.

  • Similar Research Results (1)
  • Metrics
    0
    views in OpenAIRE
    0
    views in local repository
    12
    downloads in local repository

    The information is available from the following content providers:

    From Number Of Views Number Of Downloads
    SOAS Research Online - IRUS-UK 0 12
Share - Bookmark