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    Productivity and welfare effects of Nigeria's e-voucher-based input subsidy program

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    U17ArtAssfawwossenProductivityInthomNodev.pdf (535.7Kb)
    Date
    2017-05-09
    Author
    Wossen, T.
    Abdoulaye, Tahirou
    Alene, A.
    Feleke, S.
    Ricker-Gilbert, J.
    Manyong, Victor M.
    Awotide, B.A.
    Type
    Journal Article
    Target Audience
    Scientists
    Metadata
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    Abstract/Description
    In an attempt to go beyond the so called “smart” subsidies, Nigeria has embarked on a potentially innovative mobile phone-based input subsidy program that provides fertilizer and improved seed subsidies through electronic vouchers. In this article, we examined the productivity and welfare effects of the program using household-level data from rural Nigeria. The article employed instrumental variable regression approach to control for the potential endogeneity of the input subsidy program. Our results suggest that the program is effective in improving productivity and welfare outcomes of beneficiary smallholders. The size of the estimated effects suggests a large improvement in productivity and welfare outcomes. Moreover, the distributional effects of the program suggest no heterogeneity effects based on gender and farm land size. These results are robust to using alternative measurements of program participation. The benefit–cost ratio of 1.11 suggests that the program is marginally cost-effective. Overall, our results suggest that while improving average productivity is a good outcome for improving food security, improving the distributional outcome of the program by targeting the most disadvantaged groups would maximize the program’s contribution to food security and poverty reduction.
    http://dx.doi.org/10.1016/j.worlddev.2017.04.021
    Multi standard citation
    Permanent link to this item
    https://hdl.handle.net/20.500.12478/1874
    Digital Object Identifier (DOI)
    http://dx.doi.org/10.1016/j.worlddev.2017.04.021
    IITA Subjects
    Food Security; Smallholder Farmers; Socioeconomy
    Agrovoc Terms
    Welfare; Productivity; Smallholders; Agricultural Input Subsidies; Mobile Phone
    Regions
    Africa; West Africa
    Countries
    Nigeria
    Journals
    World Development
    Collections
    • Journal and Journal Articles5283
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