DETERMINANTS OF FARMERS’ WILLINGNESS TO PAYFOR SUBSIDISED FARM INPUTS IN MALAWI
Most recently, citing low price elasticity of demand for inputs in theagro-based Malawian economy, economists and non-economistshave advocated for increasing prices forsubsidizedinputs. However,elasticities alone arenot enoughto make inferencessince knowledgeof whether higher prices a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Social Sciences Research Society
2015-01-01
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| Series: | International Journal of Social Sciences and Humanity Studies |
| Online Access: | http://www.sobiad.org/ejournals/journal_IJSS/arhieves/IJSS-2015_1/laston.pdf |
| Summary: | Most recently, citing low price elasticity of demand for inputs in theagro-based Malawian economy, economists and non-economistshave advocated for increasing prices forsubsidizedinputs. However,elasticities alone arenot enoughto make inferencessince knowledgeof whether higher prices are indeed affordableby farmers is ofspecialsignificance. This study uses the standard The results revealthat smallholder farmers are willing to pay for more inputs in theFarm Input Subsidy Programme (FISP) withthe mean WTP for eachhouseholdat MK 1000beingabout ten50kgfertilizerbags and thetotal WTP at the same price being46891 bags per yearfor4742 observedhouseholds. Using datafrom the Malawi 2011/12 FarmInput Subsidy Study (FISS4), the model identifies age,sexandeducationof household head, farm size,food securityas well asradioownershipas positivedeterminants ofWTP;withcoupon receipt andfarm incomes as negative determinants. |
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| ISSN: | 1309-8063 1309-8063 |