We measure the impacts of Malawi’s 2009 Farm Input Subsidy Program
(FISP) on fertilizer use and maize yields in central and southern Malawi. Using
three rounds of panel data and instrumental variables regression strategies to
control for endogenous selection into the subsidy program we find positive and
statistically significant correlations between participation in the FISP and
fertilizer use intensity. Fertilizer use is found to be higher among households that
plant improved maize varieties than among those that plant traditional varieties.
Results are broadly robust to the inclusion of previous fertilizer intensity to
control for household-specific differences in fertilizer use. We combine these
results with those from a maize production function to calculate programgenerated
changes in average maize availability, accounting for estimated
subsidy-induced changes in crop area. Our findings have implications for the way
input subsidy programs are designed and implemented.
Key words: Farm input subsidy program, maize yields, fertilizer use, Malawi