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Please use this identifier to cite or link to this item: http://purl.umn.edu/49290

Title: The impact of food aid on maize prices and production in Swaziland
Authors: Mabuza, M.L.
Hendriks, Sheryl L.
Ortmann, Gerald F.
Sithole, M.M.
Authors (Email): Mabuza, M.L. (lmabuza@yahoo.co.uk)
Hendriks, S.L. (Hendriks@ukzn.ac.za)
Ortmann, Gerald F. (Ortmann@ukzn.ac.za)
Issue Date: 2009-03-31
Series/Report no.: Volume 48
No.1
Abstract: The objective of the study was to provide empirical evidence on whether food aid leads to depressed domestic maize prices and reduced maize production in subsequent years in Swaziland. The lack of empirical evidence has often resulted in premature negative conclusions about the impact of food aid on Swaziland’s maize industry. The study used secondary national data from 1985 to 2006. Variables used in the statistical analysis included quantity of cereal food aid; quantity of commercial maize imports; quantity of locally produced maize; official maize producer price; open market maize producer price; fertilizer price; fuel price; rainfall; and total area planted to maize. The impact of food aid was measured using the reduced form market equilibrium model consisting of maize quantity and maize producer price functions, estimated simultaneously through the two-stage least squares (2SLS) method. Analytical results revealed that food aid received by Swaziland does not lower prices of domestic maize and has no significant negative effect on the quantity of maize produced in subsequent seasons.
URI: http://purl.umn.edu/49290
Institution/Association: Agrekon>Volume 48, Issue 1, March 2009
Total Pages: 21
From Page: 85
To Page: 106
Collections:Volume 48, Issue 1, March 2009

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