Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozambique

The Green Revolution, which bolstered agricultural yields and economic well-being in Asia Latin America beginning the 1960s, largely bypassed sub-Saharan Africa. We study first randomized controlled trial of a government-implemented input subsidy program (ISP) Africa intended to foment Revolution. find that this temporary for Mozambican maize farmers stimulates Revolution technology adoption leads increased yields. Effects persist later unsubsidized years. In addition, social networks subsidized benefit from spillovers, experiencing increases adoption, yields, beliefs about returns technologies. Spillovers account vast majority subsidy-induced gains. ISPs alleviate informational market failures, stimulating learning new technologies by recipients their networks. (JEL O13, Q12, Q16, Q18)