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Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia

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  • Ferrière, Nathalie
  • Suwa-Eisenmann, Akiko

Abstract

The paper examines the impact of food aid on households’ marketing behavior, based on a panel of households followed during 1994–2009 in 15 villages of Ethiopia. The impact of aid is examined at the intensive margin (on quantities produced, sold or bought by the households) and at the extensive margin (on the number of producers, sellers and buyers). Food aid reduces the probability of being a producer. It also increases the probability of being a seller after a reform of aid policy in 2004 from “repeated emergency distributions” toward a multi-year program aiming at agricultural development.

Suggested Citation

  • Ferrière, Nathalie & Suwa-Eisenmann, Akiko, 2015. "Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia," World Development, Elsevier, vol. 76(C), pages 114-131.
  • Handle: RePEc:eee:wdevel:v:76:y:2015:i:c:p:114-131
    DOI: 10.1016/j.worlddev.2015.07.002
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    1. repec:eee:wdevel:v:116:y:2019:i:c:p:54-65 is not listed on IDEAS
    2. Owusu-Amankwah, Georgette, 2018. "Willingness of Rural and Peri-urban Women Smallholder Farmers to Participate in Home-grown School Feeding Farming Contracts," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266714, Southern Agricultural Economics Association.
    3. Lotfali Agheli, 2016. "Demand for Natural Gas in Food and Beverage Industries of Iran," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 588-593.

    More about this item

    Keywords

    food aid; market participation; production; extensive and intensive margin; panel tobit; Ethiopia;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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