Smart Subsidy? : Welfare and Distributional Implications of Malawi’s FISP

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作者：

Jacoby, Hanan

来源地址：

http://hdl.handle.net/10986/24946

关键词：

Farmer Input Subsidy Program;  FISP;  agricultural productivity;  poor farmers;  fertilizers;  income distribution;  Report;  Rapport;  Informe; 

年份：

2016

出版地：

Washington,USA

语种：

English

摘要：

It is often argued that subsidizing fertilizer and other inputs is desirable both to boost agriculturalproduction and to help poor farmers. This analysis of Malawi's huge Farmer Input Subsidy Programhighlights a tension between these two objectives: The more FISP increases fertilizer use and therebyraises output, the greater the distortion and hence the lower the welfare gains from the program.Indeed, the empirical results indicate that up to 59% of every Kwacha spent on the FISP is wasted, in thesense that the fertilizer is not sufficiently valued by the beneficiaries. Cashing out the program is shownto have desirable distributional implications.