Market Prices and Food Aid Local and Regional Procurement and Distribution: A Multi-Country Analysis
11 Pages Posted: 10 Jul 2015 Last revised: 21 Jul 2015
Date Written: September 1, 2013
Abstract
To date, no research has rigorously addressed the concern that local and regional procurement (LRP) of food aid could affect food prices and food price volatility in food aid source and recipient countries. We assemble spatially and temporally disaggregated data and estimate the relationship between food prices and their volatility and local food aid procurement and distribution across seven countries for several commodities. In most cases, LRP activities have no statistically significant relationship with either local price levels or food price volatility. The few exceptions underscore the importance of market monitoring.
Keywords: food assistance, price analysis, local and regional procurement and distribution, spatial price transmission
Suggested Citation: Suggested Citation