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Project Description

Summary:  View help for Summary The Green Revolution, which bolstered agricultural yields and economic rural well-being in Asia and Latin America beginning in the 1960s, but largely bypassed sub-Saharan Africa. We study the first randomized controlled trial of a government-implemented input subsidy program (ISP) in Africa. We find that this 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.

Scope of Project

Subject Terms:  View help for Subject Terms Subsidy; Agriculture; Africa
JEL Classification:  View help for JEL Classification
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      O12 Microeconomic Analyses of Economic Development
      O33 Technological Change: Choices and Consequences; Diffusion Processes
Geographic Coverage:  View help for Geographic Coverage Mozambique, Africa
Universe:  View help for Universe Farmers in Manica Province in Mozambique
Data Type(s):  View help for Data Type(s) survey data

Methodology

Sampling:  View help for Sampling Self selection from farmers interested in participating
Weights:  View help for Weights None
Unit(s) of Observation:  View help for Unit(s) of Observation Household

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