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Food Aid Allocation Policies: Donor Coordination and Responsiveness to the Needs of Recipient Countries

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  • Kuhlgatz, Christian
  • Abdulai, Awudu
  • Barrett, Christopher B.

Abstract

This study employs a multivariate Tobit model to investigate whether food aid flows of the main donor countries – USA, EU (Community Aid and Member States), Canada, Japan and Australia – respond to recipient countries’ needs and the extent to which the donors interact in their food aid allocation. The response of global food aid is also analyzed with a censored least absolute deviation (CLAD) model to highlight the overall performance of aggregate food aid. The empirical results generally indicate that both global and bilateral food aid are effective instruments in improving food security at the national level in recipient countries. In particular, global food aid is found to be significantly targeted to poorer countries, as well as countries facing temporary food crises, sudden natural disasters and conflicts. All major donor countries are found to direct their food aid shipments to poorer countries and appear to significantly coordinate their food aid shipments, so that food aid from other donors are generally treated as complements. While highly significant persistence is found in each donor’s and global food aid allocation, variables representing donor interests were generally insignificant at conventional levels.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:iaae09:51686
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    File URL: http://purl.umn.edu/51686
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    References listed on IDEAS

    as
    1. Erwin H Tiongson & Benedict J. Clements & Sanjeev Gupta, 2003. "Foreign Aid and Consumption Smoothing; Evidence From Global Food Aid," IMF Working Papers 03/40, International Monetary Fund.
    2. Barrett, Christopher B, 2001. "Does Food Aid Stabilize Food Availability?," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 335-349, January.
    3. Eric Neumayer, 2005. "Is the Allocation of Food Aid Free from Donor Interest Bias?," Journal of Development Studies, Taylor & Francis Journals, vol. 41(3), pages 394-411.
    4. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
    5. Abdulai, Awudu & Barrett, Christopher B. & Hoddinott, John, 2005. "Does food aid Really have disincentive effects? New evidence from sub-Saharan Africa," World Development, Elsevier, vol. 33(10), pages 1689-1704, October.
    6. Linda M. Young & Philip C. Abbott, 2008. "Food Aid Donor Allocation Decisions After 1990," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(1), pages 27-50, March.
    7. Mikkel Barslund, 2007. "Estimation of Tobit Type Censored Demand Systems: A Comparison of Estimators," Discussion Papers 07-16, University of Copenhagen. Department of Economics.
    8. Barrett, C. B. & Heisey, K. C., 2002. "How effectively does multilateral food aid respond to fluctuating needs?," Food Policy, Elsevier, vol. 27(5-6), pages 477-491.
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    More about this item

    Keywords

    food aid; need-orientation; donor coordination; Agricultural and Food Policy; Food Security and Poverty; International Development; International Relations/Trade; F35; I38; O19; Q18;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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