IDEAS home Printed from https://ideas.repec.org/p/hal/pseptp/halshs-01245552.html
   My bibliography  Save this paper

Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia

Author

Listed:
  • Nathalie Ferrière

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Akiko Suwa-Eisenmann

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The paper examines the impact of food aid on households' marketing behavior, based on a panel of households followed during 1994–2009 in 15 villages of Ethiopia. The impact of aid is examined at the intensive margin (on quantities produced, sold or bought by the households) and at the extensive margin (on the number of producers, sellers and buyers). Food aid reduces the probability of being a producer. It also increases the probability of being a seller after a reform of aid policy in 2004 from "repeated emergency distributions" toward a multi-year program aiming at agricultural development.

Suggested Citation

  • Nathalie Ferrière & Akiko Suwa-Eisenmann, 2015. "Does Food Aid Disrupt Local Food Market? Evidence from Rural Ethiopia," PSE-Ecole d'économie de Paris (Postprint) halshs-01245552, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01245552
    DOI: 10.1016/j.worlddev.2015.07.002
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Little, Peter D., 2008. "Food Aid Dependency in Northeastern Ethiopia: Myth or Reality?," World Development, Elsevier, vol. 36(5), pages 860-874, May.
    2. Quisumbing, Agnes R., 2003. "Food Aid and Child Nutrition in Rural Ethiopia," World Development, Elsevier, vol. 31(7), pages 1309-1324, July.
    3. Lentz, Erin C. & Passarelli, Simone & Barrett, Christopher B., 2013. "The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid," World Development, Elsevier, vol. 49(C), pages 9-18.
    4. James Levinsohn & Margaret McMillan, 2007. "Does Food Aid Harm the Poor? Household Evidence from Ethiopia," NBER Chapters, in: Globalization and Poverty, pages 561-598, National Bureau of Economic Research, Inc.
    5. Takashi Yamano & Harold Alderman & Luc Christiaensen, 2005. "Child Growth, Shocks, and Food Aid in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 273-288.
    6. Semykina, Anastasia & Wooldridge, Jeffrey M., 2010. "Estimating panel data models in the presence of endogeneity and selection," Journal of Econometrics, Elsevier, vol. 157(2), pages 375-380, August.
    7. Violette, William J. & Harou, Aurélie P. & Upton, Joanna B. & Bell, Samuel D. & Barrett, Christopher B. & Gómez, Miguel I. & Lentz, Erin C., 2013. "Recipients’ Satisfaction with Locally Procured Food Aid Rations: Comparative Evidence from a Three Country Matched Survey," World Development, Elsevier, vol. 49(C), pages 30-43.
    8. Hoddinott, John, 2004. "Examining the incentive effects of food aid on household behaviour in rural Ethiopia," FCND briefs 8, International Food Policy Research Institute (IFPRI).
    9. Deena R. Khatkhate, 1962. "Some Notes on the Real Effects of Foreign Surplus Disposal in Underdeveloped Economies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 76(2), pages 186-196.
    10. Getaw Tadesse & Gerald Shively, 2009. "Food Aid, Food Prices, and Producer Disincentives in Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 942-955.
    11. Dorosh, Paul & del Ninno, Carlo & Sahn, David E., 1995. "Poverty alleviation in Mozambique: a multi-market analysis of the role of food aid," Agricultural Economics, Blackwell, vol. 13(2), pages 89-99, November.
    12. John Hoddinott & Guush Berhane & Daniel O. Gilligan & Neha Kumar & Alemayehu Seyoum Taffesse, 2012. "The Impact of Ethiopia's Productive Safety Net Programme and Related Transfers on Agricultural Productivity," Journal of African Economies, Centre for the Study of African Economies, vol. 21(5), pages -786, November.
    13. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," The World Bank Economic Review, World Bank, vol. 1(1), pages 149-179, September.
    14. Abdulai, Awudu & Barrett, Christopher B. & Hoddinott, John, 2005. "Does food aid Really have disincentive effects? New evidence from sub-Saharan Africa," World Development, Elsevier, vol. 33(10), pages 1689-1704, October.
    15. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    16. Francken, Nathalie & Minten, Bart & Swinnen, Johan F.M., 2012. "The Political Economy of Relief Aid Allocation: Evidence from Madagascar," World Development, Elsevier, vol. 40(3), pages 486-500.
    17. Barrett E. Kirwan & Margaret McMillan, 2007. "Food Aid and Poverty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1152-1160.
    18. Garg, Teevrat & Barrett, Christopher B. & Gómez, Miguel I. & Lentz, Erin C. & Violette, William J., 2013. "Market Prices and Food Aid Local and Regional Procurement and Distribution: A Multi-Country Analysis," World Development, Elsevier, vol. 49(C), pages 19-29.
    19. Broussard, Nzinga H. & Dercon, Stefan & Somanathan, Rohini, 2014. "Aid and agency in Africa: Explaining food disbursements across Ethiopian households, 1994–2004," Journal of Development Economics, Elsevier, vol. 108(C), pages 128-137.
    20. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
    21. Bezu, Sosina & Holden, Stein, 2008. "Can food-for-work encourage agricultural production?," Food Policy, Elsevier, vol. 33(6), pages 541-549, December.
    22. Daniel Gilligan & John Hoddinott & Alemayehu Seyoum Taffesse, 2009. "The Impact of Ethiopia's Productive Safety Net Programme and its Linkages," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1684-1706.
    23. Clay, Daniel C. & Molla, Daniel & Habtewold, Debebe, 1999. "Food aid targeting in Ethiopia: A study of who needs it and who gets it," Food Policy, Elsevier, vol. 24(4), pages 391-409, August.
    24. 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.
    25. John Hoddinott & Susanna Sandström & Joanna Upton, 2018. "The Impact of Cash and Food Transfers: Evidence from a Randomized Intervention in Niger," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1032-1049.
    26. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 225-242.
    27. Negassa, Asfaw & Jayne, Thomas S., 1997. "The Response of Ethiopian Grain Markets to Liberalization," Food Security Collaborative Working Papers 55595, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    28. Barrett, Christopher B & Mohapatra, Sandeep & Snyder, Donald L, 1999. "The Dynamic Effects of U.S. Food Aid," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 647-656, October.
    29. Lentz, Erin C. & Barrett, Christopher B., 2008. "Improving Food Aid: What Reforms Would Yield the Highest Payoff?," World Development, Elsevier, vol. 36(7), pages 1152-1172, July.
    30. Maxwell, S. J. & Singer, H. W., 1979. "Food aid to developing countries: A survey," World Development, Elsevier, vol. 7(3), pages 225-246, March.
    31. Jayne, Thomas S. & Strauss, John & Yamano, Takashi & Molla, Daniel, 2002. "Targeting of food aid in rural Ethiopia: chronic need or inertia?," Journal of Development Economics, Elsevier, vol. 68(2), pages 247-288, August.
    32. Mesfin Bezuneh & Brady J. Deaton & George W. Norton, 1988. "Food Aid Impacts in Rural Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 181-191.
    33. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 225-242.
    34. Jayne, T. S. & Strauss, John & Yamano, Takashi & Molla, Daniel, 2001. "Giving to the Poor? Targeting of Food Aid in Rural Ethiopia," World Development, Elsevier, vol. 29(5), pages 887-910, May.
    35. Tadesse, Getaw & Shively, Gerald, 2009. "AJAE appendix for Food aid, food prices and producer disincentives in Ethiopia," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-47, April.
    36. Pender, John & Alemu, Dawit, 2007. "Determinants of smallholder commercialization of food crops: Theory and evidence from Ethiopia," IFPRI discussion papers 745, International Food Policy Research Institute (IFPRI).
    37. Yoko Kijima & Horacio Gonzalez, 2013. "Does Observance of Religious Holidays Affect Agricultural Productivity and Household Welfare? Evidence from Rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1188-1201, September.
    38. repec:bla:devpol:v:24:y:2006:i:5:p:601-624 is not listed on IDEAS
    39. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    40. repec:fpr:export:1341 is not listed on IDEAS
    41. William Greene, 2004. "Fixed Effects and Bias Due to the Incidental Parameters Problem in the Tobit Model," Econometric Reviews, Taylor & Francis Journals, vol. 23(2), pages 125-147.
    42. Sabates-Wheeler, Rachel & Devereux, Stephen, 2010. "Cash transfers and high food prices: Explaining outcomes on Ethiopia's Productive Safety Net Programme," Food Policy, Elsevier, vol. 35(4), pages 274-285, August.
    43. Lavy, Victor, 1990. "Does food aid depress food production? The disincentive dilemma in the African context," Policy Research Working Paper Series 460, The World Bank.
    44. Guush Berhane & Daniel O. Gilligan & John Hoddinott & Neha Kumar & Alemayehu Seyoum Taffesse, 2014. "Can Social Protection Work in Africa? The Impact of Ethiopia's Productive Safety Net Programme," Economic Development and Cultural Change, University of Chicago Press, vol. 63(1), pages 1-26.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hill,Ruth & Fuje,Habtamu Neda, 2020. "What is the Impact of Weather Shocks on Prices? : Evidence from Ethiopia," Policy Research Working Paper Series 9389, The World Bank.
    2. Nathalie Ferrière, 2022. "To Give or Not to Give? How Do Other Donors React to European Food Aid Allocation?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 147-171, February.
    3. Gautam, Yograj, 2019. "“Food aid is killing Himalayan farms”. Debunking the false dependency narrative in Karnali, Nepal," World Development, Elsevier, vol. 116(C), pages 54-65.
    4. Danny Cassimon & Olusegun Fadare & George Mavrotas, 2023. "The Impact of Food Aid and Governance on Food and Nutrition Security in Sub-Saharan Africa," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    5. Owusu-Amankwah, Georgette, 2018. "Willingness of Rural and Peri-urban Women Smallholder Farmers to Participate in Home-grown School Feeding Farming Contracts," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266714, Southern Agricultural Economics Association.
    6. Lotfali Agheli, 2016. "Demand for Natural Gas in Food and Beverage Industries of Iran," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 588-593.
    7. Elsa Valli, 2017. "Essays on social protection," Economics PhD Theses 1017, Department of Economics, University of Sussex Business School.
    8. Geoffrey M. Kistruck & Patrick Shulist, 2021. "Linking Management Theory with Poverty Alleviation Efforts Through Market Orchestration," Journal of Business Ethics, Springer, vol. 173(2), pages 423-446, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:unu:wpaper:wp2012-34 is not listed on IDEAS
    2. Hoddinott, John & Margolies, Amy, 2012. "Mapping the Impacts of Food Aid: Current Knowledge and Future Directions," WIDER Working Paper Series 034, World Institute for Development Economic Research (UNU-WIDER).
    3. Amy Margolies & John Hoddinott, 2012. "Mapping the Impacts of Food Aid: Current Knowledge and Future Directions," WIDER Working Paper Series wp-2012-034, World Institute for Development Economic Research (UNU-WIDER).
    4. Yonas Alem & Nzinga H. Broussard, 2018. "The impact of safety nets on technology adoption: a difference†in†differences analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 13-24, January.
    5. Ferrière, Nathalie & Suwa-Eisenmann, Akiko, 2014. "Does food aid disrupt local food market?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182693, European Association of Agricultural Economists.
    6. Bethelhem Legesse Debela & Gerald E. Shively & Stein T. Holden, 2021. "Implications of food-for-work programs for consumption and production diversity: Evidence from the Tigray Region of Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    7. Abdulai, Awudu & Barrett, Christopher B. & Hoddinott, John, 2005. "Does food aid Really have disincentive effects? New evidence from sub-Saharan Africa," World Development, Elsevier, vol. 33(10), pages 1689-1704, October.
    8. Tilman Brück & Oscar Mauricio Díaz Botía & Neil T. N. Ferguson & Jérôme Ouédraogo & Zacharias Ziegelhöfer, 2019. "Assets for Alimentation? The Nutritional Impact of Assets-based Programming in Niger," Journal of Development Studies, Taylor & Francis Journals, vol. 55(S1), pages 55-74, December.
    9. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food aid and violent conflict: A review and Empiricist’s companion," Food Policy, Elsevier, vol. 121(C).
    10. Danny Cassimon & Olusegun Fadare & George Mavrotas, 2023. "The Impact of Food Aid and Governance on Food and Nutrition Security in Sub-Saharan Africa," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    11. Goytom Abraha Kahsay & Workineh Asmare Kassie & Abebe Damte Beyene & Lars Gårn Hansen, 2017. "Do public works programs crowd-out pro-environmental behavior? Empirical evidence from food-for-work programs in Ethiopia," IFRO Working Paper 2017/13, University of Copenhagen, Department of Food and Resource Economics.
    12. Guy Jackson, 2020. "The influence of emergency food aid on the causal disaster vulnerability of Indigenous food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(3), pages 761-777, September.
    13. Mary, Sébastien & Saravia-Matus, Silvia & Gomez y Paloma, Sergio, 2018. "Does nutrition-sensitive aid reduce the prevalence of undernourishment?," Food Policy, Elsevier, vol. 74(C), pages 100-116.
    14. Bezu, Sosina & Holden, Stein, 2008. "Can food-for-work encourage agricultural production?," Food Policy, Elsevier, vol. 33(6), pages 541-549, December.
    15. Barrett, Christopher B., 2002. "Food Aid And Commercial International Food Trade," Working Papers 14742, Cornell University, Department of Applied Economics and Management.
    16. Lara Cockx & Nathalie Francken, 2016. "Evolution and impact of EU aid for food and nutrition security: a review," Working Papers of Department of Economics, Leuven 540512, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    17. Abdulai, Awudu & Barrett, Christopher B. & Hazell, Peter, 2004. "Food aid for market development in Sub-Saharan Africa," DSGD discussion papers 5, International Food Policy Research Institute (IFPRI).
    18. Daniel Ayalew Mekonnen & Nicolas Gerber, 2017. "Aspirations and food security in rural Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 371-385, April.
    19. Kahsay, Goytom Abraha & Kassie, Workineh Asmare & Beyene, Abebe Damte & Hansen, Lars Gårn, 2022. "Pro-environmental behavior under bundled environmental and poverty reduction goals: Empirical evidence from Ethiopia," Land Use Policy, Elsevier, vol. 112(C).
    20. Elsa Valli, 2017. "Essays on social protection," Economics PhD Theses 1017, Department of Economics, University of Sussex Business School.
    21. Villegas, Laura & Smith, Vincent H. & Atwood, Joe & Belasco, Eric, 2016. "Does Participation In Public Works Programs Encourage Fertilizer Use In Rural Ethiopia?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-24, April.

    More about this item

    Keywords

    Ethiopia; panel tobit; food aid; market participation; production; extensive and intensive margin;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:pseptp:halshs-01245552. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Caroline Bauer (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.