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Food Aid Disincentives: the Tunisian Experience

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  • Mesfin Bezuneh
  • Brady Deaton
  • Segu Zuhair

Abstract

An econometric model is used to assess the short‐term (impact), interim, and cumulative effects of food aid on the economy of Tunisia for the period 1960–92. Food aid displaced neither domestic production nor commercial imports of food grains. Rather, food aid provided incentives to promote growth through its income and policy effects. Food aid provided increased public revenue that enabled the government to take an active role in domestic pricing, preventing disincentive prices and promoting domestic production. The results indicate a positive role for food aid when disincentive effects are managed through public policies.

Suggested Citation

  • Mesfin Bezuneh & Brady Deaton & Segu Zuhair, 2003. "Food Aid Disincentives: the Tunisian Experience," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 609-621, November.
    • Handle: RePEc:bla:rdevec:v:7:y:2003:i:4:p:609-621
    DOI: 10.1111/1467-9361.00212
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    References listed on IDEAS

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    Cited by:

    1. Gao, Simin & Kirwan, Barrett E., 2017. "Does U.S. Food Aid Crowd Out Local Food Production?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258406, Agricultural and Applied Economics Association.
    2. Garg, Teevrat & Barrett, Christopher B. & Gómez, Miguel I. & Lentz, Erin C. & Violette, William J., 2013. "Market Prices and Food Aid Local and Regional Procurement and Distribution: A Multi-Country Analysis," World Development, Elsevier, vol. 49(C), pages 19-29.
    3. Bezu, Sosina & Holden, Stein, 2008. "Can food-for-work encourage agricultural production?," Food Policy, Elsevier, vol. 33(6), pages 541-549, December.
    4. Zant, Wouter, 2012. "The economics of food aid under subsistence farming with an application to Malawi," Food Policy, Elsevier, vol. 37(1), pages 124-141.
    5. Deaton, Brady & Bezunrh, Mesfin, 2015. "Food Assistance: Economic Development and Food Security Impacts," 2015 Conference, August 9-14, 2015, Milan, Italy 211333, International Association of Agricultural Economists.
    6. Kyriakos C. Neanidis, 2012. "Humanitarian Aid, Fertility and Economic Growth," Economica, London School of Economics and Political Science, vol. 79(313), pages 27-61, January.
    7. Pemberton, Carlisle & Bezuneh, Mesfin & Patterson-Andrews, Hazel & Sormeaux, Afiya De, 2011. "Does Food Aid Affect the Agricultural Sector? The Small Economy Case: Jamaica," 29th West Indies Agricultural Economics Conference, July 17-21, 2011, Saint Vincent, West Indies 187327, Caribbean Agro-Economic Society.
    8. Donovan, Cynthia & McGlinchy, Megan & Staatz, John M. & Tschirley, David L., 2006. "Emergency Needs Assessments and the Impact of Food Aid on Local Markets," Food Security International Development Working Papers 54566, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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