The Variable Response of Agricultural Supply to World Price Instability in Developing Countries
AbstractThis paper analyses the effect of world price instability on the agricultural supply from developing countries and determines to what extent this effect is dependent upon the macroeconomic environment. Producers from agricultural commodity-exporting countries are particularly vulnerable to the fluctuations of world prices: they are widely exposed to price shocks and have little ability to cope with them. Nevertheless, the effectiveness of risk-coping strategies is conditioned by the influence of macroeconomic factors (infrastructure, inflation and financial deepening). Thus country-specific price indices are established, and the response of production indices to price instability indices is estimated by using a panel model including macroeconomic variables which interact with price instability. Such analysis is based on a sample of 25 countries between 1961 and 2002. The results highlight a significant negative effect of the world price instability on supply, and further show that high inflation, weak infrastructure and a poorly developed financial system exacerbate this effect. Copyright 2007 The Author. Journal compilation 2007 The Agricultural Economics Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Agricultural Economics.
Volume (Year): 59 (2008)
Issue (Month): 1 (02)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Samuel Guerineau & Hélène Ehrhart, 2012. "The impact of high and volatile commodity prices on public finances: Evidence from developing countries," Working Papers halshs-00659098, HAL.
- Ehrhart, H. & Guerineau, S., 2013.
"Commodity price volatility and tax revenue: Evidence from developing countries,"
423, Banque de France.
- Hélène Ehrhart & Samuel Guerineau, 2012. "Commodity price volatility and Tax revenues: Evidence from developing countries," Working Papers halshs-00658210, HAL.
- Theofanis Papageorgiou & Panayotis G. Michaelides & John G. Milios, 2011. "Technology and economic fluctuations in the US food sector (1958-2006): An empirical approach from a political economy perspective," International Journal of Social Economics, Emerald Group Publishing, vol. 38(2), pages 140-164, January.
- Bingxin Yu & Shenggen Fan, 2011.
"Rice production response in Cambodia,"
International Association of Agricultural Economists, vol. 42(3), pages 437-450, 05.
- Yu, Bingxin & Fan, Shenggen, 2009. "Rice Production Response in Cambodia," 2009 Conference, August 16-22, 2009, Beijing, China 51042, International Association of Agricultural Economists.
- Yu, Bingxin & Fan, Shenggen, 2009. "Rice production responses in Cambodia:," IFPRI discussion papers 939, International Food Policy Research Institute (IFPRI).
- World Bank, 2012. "Responding to Higher and More Volatile World Food Prices," World Bank Other Operational Studies 12950, The World Bank.
- Sarris, Alexander, 0. "Food commodity price volatility and food insecurity," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
- Samuel Guerineau & Hélène Ehrhart, 2012. "The impact of high and volatile commodity prices on public finances: Evidence from developing countries," Working Papers halshs-00659100, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.