It’s rare that I can combine my two primary interests–applied econometrics and food policy–in one post, and I am particularly happy to be able to do just that with this post.
In 2014, Nathan Nunn and Nancy Qian published an article in the American Economic Review where they purportedly showed that US food aid deliveries caused conflict in recipient countries. Here is the abstract of their article:
We study the effect of US food aid on conflict in recipient countries. Our analysis exploits time variation in food aid shipments due to changes in U.S. wheat production and cross-sectional variation in a country’s tendency to receive any U.S. food aid. According to our estimates, an increase in U.S. food aid increases the incidence and duration of civil conflicts, but has no robust effect on inter-state conflicts or the onset of civil conflicts. We also provide suggestive evidence that the effects are most pronounced in countries with a recent history of civil conflict.
Specifically, Nunn and Qian estimate the following two-stage least squares specification: