Coping with negative shocks and the role of the farm input subsidy programme in rural Malawi

Joseph Ajefu, Uchenna Efobi, Ibukun Beecroft

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    Abstract

    This study uses household panel data from Malawi's 2010/11 and 2012/13 Integrated Household Panel Survey to investigate the mitigating role of its Farm Input Subsidy Programme (FISP) against the deleterious impacts of negative rainfall shock on households’ welfare in rural Malawi. The study finds that the FISP has a cushioning role on the negative impact of rainfall shocks. The use of a farm input subsidy scheme enables rural households to substantially increase their food consumption and overall food security, despite the increasing threat of climate change. The results of this study highlight the importance of agricultural policy, such as the FISP, in rural households’ mitigation of weather risk.
    Original languageEnglish
    Pages (from-to)561-581
    Number of pages21
    JournalEnvironment and Development Economics
    Volume26
    Issue number5-6
    Early online date14 Jul 2020
    DOIs
    Publication statusPublished - 1 Oct 2021

    Keywords

    • Malawi
    • agricultural productivity
    • farm input subsidy
    • food security
    • land tenure
    • rainfall

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