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Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

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  • Sanjeev Gupta
  • Benedict Clements
  • Erwin R. Tiongson
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    Abstract

    The paper examines the cyclical properties of food aid with respect to food availability in recipient countries, with a view to assessing its impact on consumption in some 150 developing countries and transition economies, covering 1970 to 2000. The results show that global food aid has been allocated to countries most in need. Food aid has also been countercyclical within countries with the greatest need. However, for most countries, food aid is not countercyclical. The amount of food aid provided is also insufficient to mitigate contemporaneous shortfalls in consumption. Copyright Blackwell Publishing Ltd 2004.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of Development Economics.

    Volume (Year): 8 (2004)
    Issue (Month): 3 (08)
    Pages: 379-390

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    Handle: RePEc:bla:rdevec:v:8:y:2004:i:3:p:379-390

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    1. Lawrence J. Christiano & Terry J. Fitzgerald, 2003. "The Band Pass Filter," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 435-465, 05.
    2. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    3. Fabio Canova, 1994. "Does detrending matter for the determination of the reference cycle and the selection of turning points?," Economics Working Papers 113, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 1995.
    4. Shapouri, Shahla & Rosen, Stacey L., 2001. "Food Security and Food Aid Distribution," Agricultural Information Bulletins 33651, United States Department of Agriculture, Economic Research Service.
    5. Daphne Taylor & Derek Byerlee, 1991. "Food Aid and Food Security: A Cautionary Note," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 163-175, 07.
    6. Stephane Pallage & Michel Robe, 1998. "Foreign Aid and the Business Cycle," Cahiers de recherche CREFE / CREFE Working Papers 63, CREFE, Université du Québec à Montréal.
    7. Shapouri, Shahla, 1990. "Food Aid: Motivation and Allocation Criteria," Foreign Agricultural Economic Report (FAER) 147994, United States Department of Agriculture, Economic Research Service.
    8. Barrett, Christopher B., 2002. "Food security and food assistance programs," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 40, pages 2103-2190 Elsevier.
    9. Maxwell, S. J. & Singer, H. W., 1979. "Food aid to developing countries: A survey," World Development, Elsevier, vol. 7(3), pages 225-246, March.
    10. Barrett, Christopher B., 1999. "Does Food Aid Stabilize Food Availability?," Working Papers 14757, Cornell University, Department of Applied Economics and Management.
    11. A. Javier Hamann & Ales Bulir, 2001. "How Volatile and Unpredictable Are Aid Flows, and What Are the Policy Implications?," IMF Working Papers 01/167, International Monetary Fund.
    12. Clay, Daniel C. & Molla, Daniel & Habtewold, Debebe, 1999. "Food aid targeting in Ethiopia: A study of who needs it and who gets it," Food Policy, Elsevier, vol. 24(4), pages 391-409, August.
    13. Lavy, Victor, 1990. "Does food aid depress food production? The disincentive dilemma in the African context," Policy Research Working Paper Series 460, The World Bank.
    14. Trueblood, Michael A. & Shapouri, Shahla & Henneberry, Shida Rastegari, 2001. "Policy Options To Stabilize Food Supplies: A Case Study Of Southern Africa," Agricultural Information Bulletins 33703, United States Department of Agriculture, Economic Research Service.
    15. Ball, Richard & Johnson, Christopher, 1996. "Political, Economic, and Humanitarian Motivations for PL 480 Food Aid: Evidence from Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 515-37, April.
    16. Diven, Polly J., 2001. "The domestic determinants of US food aid policy," Food Policy, Elsevier, vol. 26(5), pages 455-474, October.
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    Cited by:
    1. Bulír, Ales & Hamann, A. Javier, 2008. "Volatility of Development Aid: From the Frying Pan into the Fire?," World Development, Elsevier, vol. 36(10), pages 2048-2066, October.
    2. Fielding, David & Mavrotas, George, 2005. "The Volatility of Aid," Working Paper Series DP2005/06, World Institute for Development Economic Research (UNU-WIDER).
    3. Stéphane Pallage & Michel A. Robe & Catherine Bérubé, 2004. "On the Potential of Foreign Aid as Insurance," Cahiers de recherche 0404, CIRPEE.
    4. Stéphane Pallage & Michel A. Robe & Catherine Bérubé, 2006. "The Potential of Foreign Aid as Insurance," IMF Staff Papers, Palgrave Macmillan, vol. 53(3), pages 5.
    5. Kuhlgatz, Christian & Abdulai, Awudu & Barrett, Christopher B., 2009. "Food Aid Allocation Policies: Donor Coordination and Responsiveness to the Needs of Recipient Countries," 2009 Conference, August 16-22, 2009, Beijing, China 51686, International Association of Agricultural Economists.
    6. Sanjeev Gupta & Catherine A. Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," IMF Working Papers 06/1, International Monetary Fund.
    7. Barrett, Christopher B., 2002. "Food Aid Effectiveness: "It'S The Targeting, Stupid!"," Working Papers 14754, Cornell University, Department of Applied Economics and Management.
    8. Eun Kwan Choi, 2005. "Infrastructure Aid, Deindustrialization, and Welfare," IMF Working Papers 05/150, International Monetary Fund.
    9. Max Blouin & Stéphane Pallage, 2007. "Humanitarian Relief and Civil Conflict," Cahiers de recherche 0706, CIRPEE.

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