Market Prices and Food Aid Local and Regional Procurement and Distribution: A Multi-Country Analysis

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...

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Bibliographic Details
Published in:World development 2013-09, Vol.49, p.19-29
Main Authors: Garg, Teevrat, Barrett, Christopher B., Gómez, Miguel I., Lentz, Erin C., Violette, William J.
Format: Article
Language:English
Subjects:
food assistance
Food prices
Food programs
local and regional procurement and distribution
Manycountries
Market prices
price analysis
Purchasing
spatial price transmission
Studies
Volatility
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Summary: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.
ISSN:0305-750X
1873-5991
DOI:10.1016/j.worlddev.2013.01.018