The Economics of Food Aid under Subsistence Farming with an Application to Malawi

    Research output: Contribution to JournalArticleAcademicpeer-review

    Abstract

    We investigate how food-aid affects price and production of staple food, with a partial equilibrium model with non-separable production and consumption. The model captures the key characteristics of sub-Saharan Africa subsistence economies. Simulations generate negative but also positive food-aid elasticities of production. Conditions are identified which mitigate the negative impact and support a positive impact. The share of domestic food production in total staple food demand (+) and the share of income from staple food production in total household income (-) are key determinants. Price and production equations, estimated with a panel of district data of the Malawi maize market for the period 1999-2010, show a small positive impact of food-aid. Large negative impacts of food-aid are not likely given production and income shares and behavioural responses. © 2011 Elsevier Ltd.
    Original languageEnglish
    Pages (from-to)124-141
    JournalFood Policy
    Volume37
    Issue number1
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    food aid
    subsistence farming
    Malawi
    subsistence
    Agriculture
    staple foods
    Economics
    food
    Food
    economics
    food production
    income
    elasticities
    household income
    Sub-Saharan Africa
    behavioral response
    elasticity
    maize
    subsistence economy
    markets

    Cite this

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    title = "The Economics of Food Aid under Subsistence Farming with an Application to Malawi",
    abstract = "We investigate how food-aid affects price and production of staple food, with a partial equilibrium model with non-separable production and consumption. The model captures the key characteristics of sub-Saharan Africa subsistence economies. Simulations generate negative but also positive food-aid elasticities of production. Conditions are identified which mitigate the negative impact and support a positive impact. The share of domestic food production in total staple food demand (+) and the share of income from staple food production in total household income (-) are key determinants. Price and production equations, estimated with a panel of district data of the Malawi maize market for the period 1999-2010, show a small positive impact of food-aid. Large negative impacts of food-aid are not likely given production and income shares and behavioural responses. {\circledC} 2011 Elsevier Ltd.",
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    The Economics of Food Aid under Subsistence Farming with an Application to Malawi. / Zant, W.

    In: Food Policy, Vol. 37, No. 1, 2012, p. 124-141.

    Research output: Contribution to JournalArticleAcademicpeer-review

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