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Computational Analysis of the U.S FTAs with Central America, Australia, And Morocco

Author

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  • James Levinsohn

    (University of Michigan)

  • Margaret McMillan

    (University of Michigan)

Abstract

This paper uses household-level data from Ethiopia to investigate the impact of food aid on the poor. We find that food aid in Ethiopia is "pro-poor." Our results indicate that (i) net buyers of wheat are poorer than net sellers of wheat, (ii) there are more buyers of wheat than sellers of wheat at all levels of income, (iii) the proportion of net sellers is increasing in living standards and (iv) net benefit ratios are higher for poorer households indicating that poorer households benefit proportionately more from a drop in the price of wheat. In light of this evidence, it appears that households at all levels of income benefit from food aid and that - somewhat surprisingly - the benefits go disproportionately to the poorest households.

Suggested Citation

  • James Levinsohn & Margaret McMillan, 2004. "Computational Analysis of the U.S FTAs with Central America, Australia, And Morocco," Working Papers 526, Research Seminar in International Economics, University of Michigan.
    • Handle: RePEc:mie:wpaper:526
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    File URL: http://fordschool.umich.edu/rsie/workingpapers/Papers526-550/r526.pdf
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    References listed on IDEAS

    as
    1. Christopher B. Barrett, 1998. "Food Aid: Is It Development Assistance, Trade Promotion, Both, or Neither?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 566-571.
    2. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
    3. Theodore W. Schultz, 1960. "Value of U.S. Farm Surpluses to Underdeveloped Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(5), pages 1019-1030.
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    Cited by:

    1. Drusilla K. Brown & Kozo Kiyota & Robert M. Stern, 2006. "Computational Analysis of the Menu of US‐Japan Trade Policies," The World Economy, Wiley Blackwell, vol. 29(6), pages 805-855, June.

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