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Smallholder Demand for Maize Hybrids in Z ambia: How Far do Seed Subsidies Reach?
Author(s) -
Smale Melinda,
Birol Ekin,
AsareMarfo Dorene
Publication year - 2014
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/1477-9552.12046
Subject(s) - subsidy , hybrid seed , poverty , agricultural economics , hybrid , economics , agriculture , business , agronomy , biology , economic growth , ecology , market economy
Abstract We add to an emerging body of literature on input subsidies in A frica south of the S ahara. Our analysis focuses on demand for seed, characterising smallholders with a high predicted demand for hybrid seed who were not reached by the subsidy programme. We use cross‐sectional data from the 2010 agricultural season and an instrumented control function approach to test the hypothesis that the subsidy on hybrid maize seed in Z ambia is selectively biased. Consistent with other literature, we find that the subsidy is a recursive determinant of seed demand, but in 2010, its recipients had more land, more assets, and lower poverty rates. Findings illustrate the social costs of the programme as currently designed and highlight the need to build alternative supply channels if poorer maize growers are to grow hybrid seed.