Incomplete Markets and Fertilizer Use : Evidence from Ethiopia
While the economic returns to using
chemical fertilizer in Africa can be large, application
rates are low. This study explores whether this is due to
missing and imperfect markets. Results based on a panel
survey of Ethiopian farmers suggest that while fertilizer
markets are not altogether missing in rural Ethiopia, high
transport costs, unfavorable climate, price risk, and
illiteracy present formidable hurdles to farmer