[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/5758.html
   My bibliography  Save this paper

Who is benefiting from fertilizer subsidies in Indonesia ?

Author

Listed:
  • Osorio, Camilo Gomez
  • Abriningrum, Dwi Endah
  • Armas, Enrique Blanco
  • Firdaus, Muhammad
Abstract
Using the Agricultural Census 2003 and the Rice Household Survey 2008 for Indonesia, this paper analyzes the distribution of benefits from fertilizer subsidies and their impact on rice production. The findings suggest that most farmers benefit from fertilizer subsidies; however, the 40 percent largest farmers capture up to 60 percent of the subsidy. The regressive nature of the fertilizer subsidies is in line with research carried out in other countries, the result of larger farms using a larger volume of fertilizer. This paper confirms that fertilizer used in adequate quantities has a positive and significant impact on rice yields, but it also provides evidence that over-using fertilizer has an adverse impact on yields (an inverted U-curve relationship).

Suggested Citation

  • Osorio, Camilo Gomez & Abriningrum, Dwi Endah & Armas, Enrique Blanco & Firdaus, Muhammad, 2011. "Who is benefiting from fertilizer subsidies in Indonesia ?," Policy Research Working Paper Series 5758, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5758
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/08/15/000158349_20110815101102/Rendered/PDF/WPS5758.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(2), pages 209-225.
    2. Pantjar Simatupang & C. Peter Timmer, 2008. "Indonesian Rice Production: Policies And Realities," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 65-80.
    3. Ramon Lopez, 2004. "The Structure of Public Expenditures, Agricultural Income and Rural Poverty: Evidence from 10 Latin American countries," Econometric Society 2004 Latin American Meetings 343, Econometric Society.
    4. Ramón López, 2004. "Effect of the Structure of Rural Public Expenditures on Agricultural Growth and Rural Poverty in Latin America," IDB Publications (Working Papers) 50958, Inter-American Development Bank.
    5. Dorward, Andrew & Chirwa, Ephraim & Kelly, Valerie A. & Jayne, Thomas S. & Slater, Rachel & Boughton, Duncan, 2008. "Evaluation Of The 2006/7 Agricultural Input Subsidy Programme, Malawi. Final Report," Food Security Collaborative Working Papers 97143, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Warr & Arief Anshory Yusuf, 2014. "Fertilizer subsidies and food self-sufficiency in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 571-588, September.
    2. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    3. Livia Bizikova & Stefan Jungcurt & Kieran McDougal & Carin Smaller, 2017. "Effective Public Investments to Improve Food Security," Working Papers id:12324, eSocialSciences.
    4. Harianto Harianto & M. Parulian Hutagaol & Iman Widhiyanto, 2019. "Sources and Effects of Credit Accessibility on Smallholder Paddy Farms Performance: An Empirical Analysis of Government Subsidized Credit Program in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 9(5), pages 1-10.
    5. World Bank, "undated". "East Asia and Pacific Economic Update, April 2017," World Bank Publications - Reports 26332, The World Bank Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chemingui, Mohamed Abdelbasset, 2007. "Public spending and poverty reduction in an oil-based economy: The case of Yemen," IFPRI discussion papers 701, International Food Policy Research Institute (IFPRI).
    2. Kaiyatsa, Stevier & Jumbe, Charles & Ricker-Gilbert, Jacob, 2017. "Supply-side Crowding-out and Crowding-in Effects of Malawi’s Farm Input Subsidy Program on Private-sector Input Marketing: A Quasi-experimental Field Study," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258135, Agricultural and Applied Economics Association.
    3. Giovanni Andrea Cornia & Laura Deotti & Maria Sassi, "undated". "Food Price Volatility over the Last Decade in Niger and Malawi: Extent, Sources and Impact on Child Malnutrition," UNDP Africa Policy Notes 2012-002, United Nations Development Programme, Regional Bureau for Africa.
    4. Chirwa, Themba G., 2010. "Program evaluation of agricultural input subsidies in Malawi using treatment effects: Methods and practicability based on propensity scores," MPRA Paper 20878, University Library of Munich, Germany.
    5. Blanco Armas, Enrique & Gomez Osorio, Camilo & Moreno-Dodson, Blanca, 2010. "Agriculture Public Spending and Growth:The Example of Indonesia," World Bank - Economic Premise, The World Bank, issue 9, pages 1-4, April.
    6. Aggarwal, Shilpa & Jeong, Dahyeon & Kumar, Naresh & Park, David Sungho & Robinson, Jonathan & Spearot, Alan, 2024. "Shortening the path to productive investment: Evidence from input fairs and cash transfers in Malawi," Journal of Development Economics, Elsevier, vol. 170(C).
    7. Channing Arndt & Karl Pauw & James Thurlow, 2016. "The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(3), pages 962-980.
    8. Dennis Gain & Tsunemi Watanabe, 2017. "Expert Evaluation of Subsidies for the Management of Fragmented Private Forest in Regards to National Biodiversity Goals—The Case of Kochi Prefecture, Japan," Sustainability, MDPI, vol. 9(4), pages 1-15, April.
    9. Hasibuan, Abdul Muis & Gregg, Daniel & Stringer, Randy, 2020. "Accounting for diverse risk attitudes in measures of risk perceptions: A case study of climate change risk for small-scale citrus farmers in Indonesia," Land Use Policy, Elsevier, vol. 95(C).
    10. Lee, Hiro & Roland-Holst, David, 2000. "Trade and Transmission of Endogenous Growth Effects: Japanese Economic Reform as an Externality for East Asian Economies," Conference papers 330892, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Yohanis Ngongo & Tony Basuki & Bernard deRosari & Yosep Seran Mau & Kartika Noerwijati & Helena daSilva & Alfonso Sitorus & Noldy R. E. Kotta & Wani Hadi Utomo & Erwin Ismu Wisnubroto, 2022. "The Roles of Cassava in Marginal Semi-Arid Farming in East Nusa Tenggara—Indonesia," Sustainability, MDPI, vol. 14(9), pages 1-22, April.
    12. Fuglie, Keith O. & Rada, Nicholas E., 2013. "Resources, Policies, and Agricultural Productivity in Sub-Saharan Africa," Economic Research Report 145368, United States Department of Agriculture, Economic Research Service.
    13. Tae Hoon Oum & Katsuhiro Yamaguchi & Yuichiro Yoshida, 2011. "Efficiency Measurement Theory and its Application to Airport Benchmarking," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 13, Edward Elgar Publishing.
    14. Peterman, Amber & Behrman, Julia & Quisumbing, Agnes, 2010. "A review of empirical evidence on gender differences in nonland agricultural inputs, technology, and services in developing countries," IFPRI discussion papers 975, International Food Policy Research Institute (IFPRI).
    15. Ramón López, 2005. "Under‐investing in public goods: evidence, causes, and consequences for agricultural development, equity, and the environment," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 211-224, January.
    16. Robert Evenson & Keith Fuglie, 2010. "Technology capital: the price of admission to the growth club," Journal of Productivity Analysis, Springer, vol. 33(3), pages 173-190, June.
    17. Holden, Stein & Mangisoni, Julius, 2013. "Input subsidies and improved maize varieties in Malawi: -What can we learn from the impacts in a drought year?," CLTS Working Papers 7/13, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    18. Jacob Ricker-Gilbert & T. S. Jayne, 2017. "Estimating the Enduring Effects of Fertiliser Subsidies on Commercial Fertiliser Demand and Maize Production: Panel Data Evidence from Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 70-97, February.
    19. Manuela Fritz & Michael Grimm & Patrick Keilbart & Dimas Dwi Laksmana & Nathalie Luck & Martina Padmanabhan & Nurcahyaningtyas Subandi & Kristian Tamtomo, 2021. "Turning Indonesia Organic: Insights from Transdisciplinary Research on the Challenges of a Societal Transformation," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    20. Pauw, Karl & Thurlow, James & van Seventer, Dirk, 2010. "Droughts and floods in Malawi," IFPRI discussion papers 962, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Fertilizers; Crops&Crop Management Systems; Economic Theory&Research; Regional Economic Development; Rural Poverty Reduction;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5758. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.