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Going the Extra Mile: Farm Subsidies and Spatial Convergence in Agricultural Input Adoption / Naresh Kumar, Rolly Kapoor, Shilpa Aggarwal, Dahyeon Jeong, David Sungho Park, Jonathan Robinson, Alan Spearot.
- Format:
- Book
- Author/Creator:
- Kumar, Naresh.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w31704.
- NBER working paper series no. w31704
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2023.
- Summary:
- Many countries subsidize agricultural inputs but require farmers to travel to retailers to access inputs, just as for normal purchases. What effect do travel costs have on subsidy take-up and input usage, particularly for remote farmers? We analyze Malawi's Farm Input Subsidy Program (FISP), and show that travel-cost-adjusted prices are substantially higher in remote areas. However, subsidy redemption is nearly universal. We make use of a policy change in 2017-19 which took centralized control of beneficiary selection and find that FISP eliminates the sizeable remoteness gradient that exists for non-beneficiaries. Our results demonstrate that subsidy programs may narrow spatial inequities.
- Notes:
- Print version record
- September 2023.
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