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Food subsidies and cash transfers in Egypt: Evaluating general equilibrium benefits and trade-offs
Open accessAbstract
Most Egyptians receive food subsidies, which are the cornerstone of the country’s social protection system. The government recently attempted to reduce subsidies, with limited success, and introduced a cash transfer program targeting the poor. We use a dynamic general equilibrium model of the Egyptian economy to evaluate the growth and distributional impacts of subsidy reforms and cash transfers. We find that the welfare of poor households would be enhanced by a smaller, but better targeted food subsidy program, and that, if the cost savings from reforms are channeled into investment, faster economic growth would eventually outweigh any short-term welfare losses. However, most of the gains from subsidy reforms accrue to nonpoor households. Combining subsidy reforms with cash transfers leads to the largest welfare gains for the poor, while leaving the welfare of nonpoor households largely intact. The latter is crucial to maintaining support for ongoing subsidy reform efforts.
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“in Egypt, the government spends around $3 billion a year on wheat imports, most of which goes toward a bread subsidy program, the Tamween ration card system, covering 73% of Egyptian families [50]. The recent spike in wheat prices has resulted in a significant increase in the expense of administering this program [49].”
From Impacts of the Russia-Ukraine War on Global Food Security: Towards More Sustainable and Resilient Food Systems? (2022) · cites this paper as [50]
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Ben Hassen, T., & El Bilali, H. (2022) · Foods · doi:10.3390/foods11152301 · Cited by 745
Abay, K. A., Breisinger, C., Glauber, J. W., Kurdi, S., Laborde Debucquet, D., & Siddig, K. (2022) · doi:10.2499/p15738coll2.135913 · Cited by 41
Self-citationAbay, K. A., Yonzan, N., Kurdi, S., et al. (2022) · Journal of African Economies · doi:10.1093/jae/ejac041 · Cited by 18
Self-citationWheat Farmers’ Perception of Constraints and Their Adaptive Capacity to Changing Demands in Egypt
Abdalla, A., Stellmacher, T., & Becker, M. (2023) · Agriculture · doi:10.3390/agriculture13081554 · Cited by 5
Food as right, food as bribe: the politicization of food distribution in rural Egypt
Ahmed, Y. M. (2023) · Canadian Journal of Development Studies/Revue canadienne d études du développement · doi:10.1080/02255189.2022.2155625 · Cited by 3
“For example, in a recent report by IFPRI, researchers used econometric models (namely the dynamic general equilibrium model) of the Egyptian economy to evaluate the growth and distributional impacts of subsidy reforms and cash transfers (Breisinger et al. 2021).”
BackgroundThe Ruination of Tamwîn? Ration Shops, Valuation Struggles, and the New Food Subsidy System in Egypt
Vannetzel, M. (2024) · Égypte Soudan Mondes Arabes · doi:10.4000/134ao · Cited by 2
Abay, K. A., Yonzan, N., Kurdi, S., et al. (2022) · doi:10.2499/p15738coll2.136411 · Cited by 2
Self-citationEffect of Heat Stress on Yield and Its Components of some Egyptian Wheat Cultivars
Naif, E., & Abdelghany, M. (2022) · Journal of Plant Production · doi:10.21608/jpp.2022.157333.1157 · Cited by 1
“An overall positive trend was observed with an inclusive increase of about 23.6 percent during these 10 years (Breisinger et al., 2021).”
BackgroundInfluential
Metadata
- Authors
- Breisinger, C., Kassim, Y., Kurdi, S., Randriamamonjy, J., & Thurlow, J.
- Published
- 2021
- OpenAlex
- W3171623920
- Cited by
- 10
- References
- 0
- Citations by year
- 2024: 1 · 2023: 4 · 2022: 5
- Type
- report
- Language
- en
- Open access
- green
- www.ifpri.org
- Licence
- other-oa
- Locations
- RePEc: Research Papers in Economics (submittedVersion)
- IFPRI E-brary (International Food Policy Research Institute) (submittedVersion, other-oa)
- CGSPace A Repository of Agricultural Research Outputs (Consultative Group for International Agricultural Research) (submittedVersion, other-oa)
- International Food Policy Research Institute (International Food Policy Research Institute) (submittedVersion, other-oa)
- Topics
- Social Sciences › Development › Poverty, Education, and Child Welfare
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
- Keywords
- food subsidies, cash transfers, subsidy reform, social protection, welfare effects, economic growth, distributional effects, targeted subsidies, poverty, Egypt
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