Food aid and donations

Objectives:

“Using a change in the rules of EU food aid policy in 1996, I investigate how donor countries react to EU’s food aid allocation.”

“develop a simple theoretical framework in which donors react to EU’s action either indirectly because it changes the recipient’s needs or directly because they are motivated by comparing with their allocation with the EU.”

Results:

“two different reactions depending on the size of the recipients.”

“if the EU stops allocating food aid to a small country, this reduces by 1.4 the average number of other donors.”

“if the EU stops allocating to a large country, this increases by 0.3 the average number of other donors”

donor typology: “motivated by direct comparison with the EU allocation in the case of small countries and by recipient’s characteristics for large countries”

Source: Paris School of Economics

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