Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103002
Authors: 
Arndt, Channing
Pauw, Karl
Thurlow, James
Year of Publication: 
2014
Series/Report no.: 
WIDER Working Paper 2014/099
Abstract: 
We estimate the impact of Malawi's Farm Input Subsidy Programme using an economywide approach. We find potentially substantial net benefits with indirect benefits accounting for about two-fifths of total benefits. Due to these indirect benefits, the cut-off at which lower fertilizer yield response rates lead to net programme losses is much lower than the value suggested by existing partial equilibrium evaluations. Benefits decline with domestic financing and real fertilizer price increases. Abstracting from extreme events, Malawi's programme potentially generates double dividends through higher and more drought-resilient yields. Overall, our results buttress arguments for patience and a focus on programme efficiency improvements.
Subjects: 
programme evaluation
risk assessment
economywide model
farm subsidies
Malawi
JEL: 
C68
O13
O22
Q18
ISBN: 
978-92-9230-820-9
Document Type: 
Working Paper

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