The Effect of Agricultural Input Subsidies on Productivity: A Meta-Analysis

Abstract

This paper systematically analyzes the effect of agricultural input subsidies in developing countries on yield and income, using a meta-analysis. From three databases, the analysis identifies 12 studies with 32 estimated effects on yield and 23 estimated effects on income. The findings show that programs that provide subsidized fertilizer and improved seeds are associated with average increases of 18 percent in yields and 16 percent in farming household incomes. These findings suggest that agricultural subsidies can lead to increased yields and contribute to improved living standards.