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

Published online by Cambridge University Press:  14 July 2020

Joseph B. Ajefu Open the ORCID record for Joseph B. Ajefu [Opens in a new window] ,
Uchenna Efobi Open the ORCID record for Uchenna Efobi [Opens in a new window]  and
Ibukun Beecroft
Joseph B. Ajefu*
Affiliation:
Newcastle Business School, Northumbria University, Newcastle Upon Tyne, UK
Uchenna Efobi
Affiliation:
College of Business and Social Sciences, Centre for Economic Policy and Development Research, Covenant University, Ota, Nigeria
Ibukun Beecroft
Affiliation:
Department of Economics, Centre for Economic Policy and Development Research, Covenant University, Ota, Nigeria
*
*Corresponding author. E-mail: joeajefu@gmail.com
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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.

Keywords

agricultural productivityfarm input subsidyfood securityland tenureMalawirainfall

JEL classification

N57: Africa • Oceania Q12: Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q15: Land Ownership and Tenure • Land Reform • Land Use • Irrigation • Agriculture and Environment Q18: Agricultural Policy • Food Policy
Type
Research Article
Information
Environment and Development Economics , Volume 26 , Special Issue 5-6: Weather and Climate Impacts in Developing Countries , October 2021 , pp. 561 - 581
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press

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