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THE DYNAMIC EFFECTS OF U.S. FOOD AID
Author(s) -
Barrett Christopher B.,
Mohapatra Sandeep,
Snyder Donald L.
Publication year - 1999
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1999.tb01454.x
Subject(s) - economics , food aid , per capita , competitor analysis , externality , vector autoregression , production (economics) , international economics , agricultural economics , international trade , monetary economics , food security , macroeconomics , microeconomics , agriculture , ecology , population , demography , management , sociology , biology
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. ( JEL F14, O13, Q17, Q18)