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Food Aid as a Development Tool: Colombia, 1950-80

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  • Grigsby, S. Elaine
  • Simpson, James R.

Abstract

The US commodity export programme (CEP) provides subsidized credit to the importer (rather than subs1d1zed commodity prices) to alleviate foreign exchange and income problems on the part of the importer. In the case of Colombia, credit subs1d1es were such that the total cost of financed imports approximated the cash price. The impact of CEP subsidies on wheat import demand in Colombia was estimated. CEP credit increased demand for CEP and commercial imports. The cost of CEP financing behaved as a price vanable. CEP aid included providing credit subsidies and making available the revenues from the resale of commod1ties m the domestic market (net of loan repayment) that could then be used for econom1c development or other purposes.

Suggested Citation

  • Grigsby, S. Elaine & Simpson, James R., 1987. "Food Aid as a Development Tool: Colombia, 1950-80," 1987 Occasional Paper Series No. 4 197396, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo4:197396
    DOI: 10.22004/ag.econ.197396
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    References listed on IDEAS

    as
    1. Philip C. Abbott, 1979. "Modeling International Grain Trade with Government Controlled Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 22-31.
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