Agricultural and Biological Sciences
4 years ago

Government subsidies in Rwanda benefit large-scale producers more than the poor.

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RePEc: Research Papers in Economics
Income and welfare effects of input subsidies across representative agricultural households of rural Rwanda
Bruno Henry de Frahan, János Bali, Carine Tuyishime

Paper Summary

Subsidies for fertilizers and seeds in Rwanda help all types of farmers, but more so when the market is competitive. These subsidies boost incomes and welfare for households, especially for poorer farmers. However, larger farms benefit more as they can afford to buy inputs without subsidies. The study used a model to analyze the effects of these subsidies on different types of farmers in Rwanda.

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