Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

Gupta, Sanjeev; Clements, Benedict; Tiongson, Erwin R.

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Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

12 Pages Posted: 1 Sep 2004

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Benedict Clements

International Monetary Fund (IMF) - African Department

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS); Institute for the Study of Labor (IZA); University College London - CReAM - Centre for Research and Analysis of Migration; Asian Institute of Management

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Abstract

The paper examines the cyclical properties of food aid with respect to food availability in recipient countries, with a view to assessing its impact on consumption in some 150 developing countries and transition economies, covering 1970 to 2000. The results show that global food aid has been allocated to countries most in need. Food aid has also been countercyclical within countries with the greatest need. However, for most countries, food aid is not countercyclical. The amount of food aid provided is also insufficient to mitigate contemporaneous shortfalls in consumption.

Suggested Citation: Suggested Citation

Gupta, Sanjeev and Clements, Benedict and Tiongson, Erwin R., Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid. Available at SSRN: https://ssrn.com/abstract=573042