A Relationship between Food Aid and Food Trade: Theoretical Analysis and Quantitative Results Report as inadecuate




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This paper clarifies linkages between food aid and food trade, both theoretically andempirically. A theoretical model first shows that domestic policy is crucial for the trade effects of food aid.Food trade may fall, remain constant, or even rise due to increased food aid. The important issue iswhether the recipient country's government spends the counterpart funds to subsidize demand or supply.Estimated cereal import demand functions for Botswana, Egypt, Morocco, Peru, and Sudan indicate verydifferent reactions of food imports to food aid across countries. The paper also investigates from thedonor's point of view how a country's food import position affects the amount of food aid it receives. Across-country analysis of the allocations of the EC's food aid reveals that per-capita food aid is higher thelower the per-capita income of a recipient country, the worse its balance-of-payments situation, and themore it depends on food imports.

Subject(s): Food Consumption/Nutrition/Food Safety

Food Security and Poverty

International Relations/Trade

Issue Date: 1992

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/197872 Page range: 167-174

Total Pages: 8

Record appears in: International Association of Agricultural Economists (IAAE) > 1992 Occasional Paper Series No. 6





Author: Herrmann, Roland ; Prinz, Carlo ; Schenck, Patricia

Source: http://ageconsearch.umn.edu/record/197872?ln=en







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