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

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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
Autor: Herrmann, Roland ; Prinz, Carlo ; Schenck, Patricia
Fuente: http://ageconsearch.umn.edu/record/197872?ln=en