Food aid, cash transfers and producer prices in Ethiopia

Meron Assefa Arega and Gerald Shively

African Journal of Agricultural and Resource Economics, 2019, vol. 14, issue 4

Abstract: We measured the producer price impacts of food and cash transfer programmes in Ethiopia using monthly panel data from 37 zones in four major regions over the period January 2007 to December 2010. We studies the independent and joint impacts of Ethiopia’s Productive Safety Net Programme (PSNP) and emergency relief programmes on producer prices for teff, wheat and maize. We estimated a series of dynamic, fixed-effects and seemingly unrelated regression (SUR) models. The results indicate that food aid allocated both by the PSNP and emergency relief programmes has either no discernible correlation with subsequent prices, or a weak, negative correlation. This suggests no strong disincentive effect of food aid on agricultural producers. The magnitudes of the correlations between prices and seasonal and time trends are substantially stronger than those associated with cash and grain transfers to local markets.

Keywords: Agricultural Finance; Food Security and Poverty (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:afjare:301045

DOI: 10.22004/ag.econ.301045

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