The economics of food aid under subsistence farming with an application to Malawi

Wouter Zant

Food Policy, 2012, vol. 37, issue 1, 124-141

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.

Keywords: Food aid; Staple food markets; Food security; Supply response; Malawi; Africa (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:37:y:2012:i:1:p:124-141

DOI: 10.1016/j.foodpol.2011.09.004

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