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Cargo Preference and U.S. International Food Aid Programs

Stephanie Mercier and Vincent Smith

Applied Economic Perspectives and Policy, 2020, vol. 42, issue 4, 759-776

Abstract: The United States is the world's largest donor of humanitarian assistance. However, that aid's effectiveness is hampered by decades‐old rules that restrict where food aid commodities are purchased and how they are transported to recipient countries. This paper evaluates costs associated with one of those restrictions—food aid cargo preference—which requires that at least half of all U.S. food aid shipped in a given year be carried on U.S.‐flagged vessels. The empirical analysis presented in this study, based on individual food aid shipments between January 2012 and May 2015, indicates that cargo preference added $42 million annually to program costs.

Date: 2020
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https://doi.org/10.1093/aepp/ppz008

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:42:y:2020:i:4:p:759-776

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