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The Dynamic Effects Of U.S. Food Aid

  • Barrett, Christopher B.
  • Mohapatra, Sandeep
  • Snyder, Donald L.

Although food aid may have important medium- to long-term effects, there is a glaring absence of empirical research on food aid dynamics. This paper applies vector autoregression methods to data from 18 countries over the period 1961-95. We find evidence that food aid has a pronounced J-curve effect on recipient country per capita commercial food imports but only negligible negative effects on recipient country per capita food production. The commercial export gains are primarily enjoyed, however, by the donors' competitors, revealing heretofore unrecognized positive pecuniary trade externalities associated with foreign assistance. Copyright 1999 by Oxford University Press.

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File URL: http://purl.umn.edu/28362
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Paper provided by Utah State University, Economics Department in its series Economics Research Institute, ERI Study Papers with number 28362.

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Date of creation: 1998
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Handle: RePEc:ags:usuesp:28362
Contact details of provider: Web page: http://www.econ.usu.edu/
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  1. Christopher B. Barrett, 1998. "Food Aid: Is It Development Assistance, Trade Promotion, Both, or Neither?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 566-571.
  2. Abbott, Philip C. & McCarthy, F. Desmond, 1982. "Welfare effects of tied food aid," Journal of Development Economics, Elsevier, vol. 11(1), pages 63-79, August.
  3. Mohapatra, Sandeep & Barrett, Christopher B. & Snyder, Donald L. & Biswas, Basudeb, 1998. "Does Food Aid Really Discourage Food Production?," Economics Research Institute, ERI Study Papers 28369, Utah State University, Economics Department.
  4. Barrett, Christopher B. & Mohapatra, Sandeep & Snyder, Donald L., 1998. "The Dynamic Effects Of U.S. Food Aid," Economics Research Institute, ERI Study Papers 28362, Utah State University, Economics Department.
  5. Blanchard, Olivier Jean, 1989. "A Traditional Interpretation of Macroeconomic Fluctuations," American Economic Review, American Economic Association, vol. 79(5), pages 1146-64, December.
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