Implications of consumer-oriented food subsidies for domestic agriculture

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International Food Policy Research Institute

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This chapter does not attempt to provide a balanced assessment of the costs and benefits of food subsidy systems. Rather, it focuses on answering three questions: 1. What are the mechanisms through which consumer-oriented food subsidies affect domestic agriculture? 2. To what extent do consumer-oriented food subsidies burden domestic agriculture? That is, what is the empirical evidence? 3. How may the potentially negative effects of consumer-oriented food subsidies on domestic agriculture be avoided?

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subsidies, developing countries, food aid, agricultural policies

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