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Does Food Aid Harm the Poor? Household Evidence from Ethiopia

Does Food Aid Harm the Poor? Household Evidence from Ethiopia

Chapter:
(p.561) 13 Does Food Aid Harm the Poor? Household Evidence from Ethiopia
Source:
Globalization and Poverty
Author(s):
James LevinsohnMargaret McMillan
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226318004.003.0014

This chapter provides a study on Ethiopian rural grain producers. It examines the effect of food aid on both consumption and production by the rural poor. The data show that households at all levels of income benefit from food aid and that the benefits go disproportionately to the poorest households. Additionally, the net buyers of wheat are poorer than net sellers of wheat. There are also more buyers of wheat than sellers of wheat at all levels of income and the proportion of net sellers is increasing in living standards. The net benefit ratios are higher for poorer households, indicating that poorer households benefit proportionately more from a drop in the price of wheat. Although households at all levels of living standards benefit from a reduction in food prices, the benefits are proportionately larger for the poorest households.

Keywords:   food aid, Ethiopian rural grain, rural poor, households, income, wheat, food prices

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