• Tomoya MatsumotoGRIPS

We used a randomized control trial to measure how the free distribution of hybrid seeds and chemical fertilizers for maize production affected their adoption by small-scale farmers in the subsequent seasons. Information on their demand for the same inputs was collected through sales meetings which we organized in 2009 and

2011 where the inputs were actually sold. It revealed that the demand for the inputs of the free-input recipients was significantly higher in both 2009 and 2011 than that of non-recipients; that of the neighbors of the recipients fell in-between. The initial treatment assignment has a persistent influence on the farmers’ demand over the two years whereas the difference between the free-input recipients and their neighbors has been reduced to some extent. The reduction of their gap in the application level of fertilizers is partly driven by social learning through information networks. However, there was no clear evidence of learning effects from peers on the demand for the hybrid seeds. One possible explanation of these mixed results is due to slow dissemination of the new inputs with low profitability. (JEL O13, O33, O55)