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Uncovering the World Food Program’s economic footprint in East Africa

Author

Listed:
  • Corong, Erwin
  • Kagin, Justin
  • van der Mensbrugghe, Dominique
  • Krishnaswamy, Siddharth
  • Husain, Arif
  • Nnanga, Kennedy
  • Monetta, Cinzia
  • Pahari, Krishna
  • Edward Taylor, J.

Abstract

We use general-equilibrium modelling methods to estimate the “economic footprint” of the operations of a major international development agency on the national and regional economies in which it operates. We find that each dollar spent by the United Nations World Food Program (WFP) Regional Bureau of Nairobi (RBN) operations increases the total value of production in the East African region by as much as $2.30 and regional real (inflation-adjusted) gross domestic product (GDP) by up to $1.42. There are large variations across countries. For example, real-income effects range from $3.68 in Uganda to −$2.38 in Eritrea. WFP-RBN spending adds up to 20,047 year-round equivalent jobs for skilled workers and 365,606 jobs for unskilled workers in East Africa. Though not a focus of this study, we show that WFP RBN cash-based transfers to households add to these impacts. To our knowledge, this is the first effort to rigorously document the economy-wide impacts of the operations of a major development actor.

Suggested Citation

  • Corong, Erwin & Kagin, Justin & van der Mensbrugghe, Dominique & Krishnaswamy, Siddharth & Husain, Arif & Nnanga, Kennedy & Monetta, Cinzia & Pahari, Krishna & Edward Taylor, J., 2025. "Uncovering the World Food Program’s economic footprint in East Africa," Food Policy, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:jfpoli:v:134:y:2025:i:c:s0306919225001010
    DOI: 10.1016/j.foodpol.2025.102896
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    Keywords

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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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