Title:
Economic Modeling of Food Aid flows from Developed to Developing countries
Presenter: Edward Esiedu and Edward Olale
Authors:
Nazli Hina, Edward Esiedu, Edward Olale, Henry Anim-Somuah, Jonathan So and Rakhal Sarker
Date: May 25 2007
Location: Department of Food, Agricultural and Resource Economics, University of Guelph
Abstract:
This paper aims to examine the determinants of food aid from Australia, Canada, European Union, Japan and United States to Sub- Saharan Africa (SSA) and South Asia, using panel data from FAO stats. First, results show that Australia gives food aid to SSA in response to the food consumption gap, but not in South Asia. Canada’s food aid is not clearly responsive to SSA and South Asia’s needs. While food stocks in Canada determine aid flow to SSA, none of the factors considered in the study were significant for Asia. The European Union’s food aid policy to both regions is driven by the food consumption gap and the EU “cash only” policy. The EU’s aid responsiveness to food consumption gap was significantly higher for Sub-Saharan Africa than South Asia. Surprisingly, EU food aid policy incrementalism positively influenced aid to South Asia but not to SSA. Japan’s food aid policy to South Asia is motivated by humanitarian reasons, or available food stock in the country, yet in SSA the consumption gap is a key factor. Factors which influence US food aid polity towards sub Saharan Africa and South Asia are different. For SSA food consumption gap plays an important factor but not in South Asia. On the other hand, growth in GDP is significantly affect aid flows to South Asia but not SSA.
Presentation:
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