Tracing the Impacts of Food aid on Agriculture and Consumers: A Computable General Equilibrium Approach."
No Thumbnail Available
Date
2007-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This paper has analyzed the impact of four different food aid shocks on production,
prices and welfare on different household groups in Ethiopia, using a computable
general equilibrium (CGE) model and a social accounting matrix constructed for
Ethiopia. The researcher simulated the impact of (i) a 20 percent decline in in-kind
food am, (ii) a 20 percent in-kind food aid cut replaced by direct cash transfer
equivalent, (iii) abolishment of in-kind emergency food aid, and (iv) all in-kind
emergency food aid converted into mrect cash transfer equivalent
the results suggest that food aid has some disincentive effects on food crops
production through reduced prices. the simulation of the partial as well as the full
shift from in-kind emergency food aid to direct cash transfer equivalent has positive
but not large effects on food crops price. Moreover, direct cash transfer has
expansionary effects on local agricultural production.policy implication is that to limit the use of in-kind food aid to situations of local
food shortage. In other situations, food aitl should be provided in cash form to
purchase food locally or regionally.
Description
Keywords
Agriculture, Impacts