THE IMPACT OF FOOD AID ON FOOD SUBSIDIES IN RECIPIENT COUNTRIES

A model in which policy makers maximize a weighted welfare function of producer, consumer, and taxpayer groups is applied to explain the eff ects of food aid receipts on food policies in the countries receiving food aid. Consumer subsidies for wheat in nine countries receiving foo d aid are examined during the 1955-83 period. Econometric results indi cate food aid increases domestic food subsidies in the recipient count ries, but that other factors (development, country-specific factors) a re more important in determining subsidy level.