Chapter

Does Food Aid Harm the Poor? Household Evidence from Ethiopia

James Levinsohn and Margaret McMillan

in Globalization and Poverty

Published by University of Chicago Press

Published in print April 2007 | ISBN: 9780226317946
Published online February 2013 | e-ISBN: 9780226318004 | DOI: http://dx.doi.org/10.7208/chicago/9780226318004.003.0014
Does Food Aid Harm the Poor? Household Evidence from Ethiopia

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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

Chapter.  12087 words.  Illustrated.

Subjects: Economic Development and Growth

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