Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozambique

Michael Carter, Rachid Laajaj and Dean Yang

No 26208, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The Green Revolution bolstered agricultural yields and rural well-being in Asia and Latin America, but bypassed sub-Saharan Africa. We study the first randomized controlled trial of a government-implemented input subsidy program (ISP) in Africa. A temporary subsidy for Mozambican maize farmers stimulates Green Revolution technology adoption and leads to increased maize yields. Effects of the subsidy persist in later unsubsidized years. In addition, social networks of subsidized farmers benefit from spillovers, experiencing increases in technology adoption, yields, and beliefs about the returns to the technologies. Spillovers account for the vast majority of subsidy-induced gains. ISPs alleviate informational market failures, stimulating learning about new technologies by subsidy recipients and their social networks

JEL-codes: O12 O33 O55 Q12 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-agr, nep-net, nep-pay and nep-tid
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Published as Michael Carter & Rachid Laajaj & Dean Yang, 2021. "Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozambique," American Economic Journal: Applied Economics, vol 13(2), pages 206-229.

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Journal Article: Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozambique (2021)
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