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Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa

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  • Joseph Kargbo

Abstract

Eastern and southern Africa has been experiencing relatively large increases in real food prices since the early 1980s. Real food prices in some African countries grew as much as 11% per year during the 1980-1996 period. The huge volatility in food prices coincided with the implementation of structural adjustment programmes in several African countries. This study examines the impacts of monetary and macroeconomic factors on real food prices in eastern and southern Africa. Using the technique of cointegration and error correction modelling to test the long-run relationship between real food prices and the factors that influence their behaviour in selected African countries. Demand elasticities for food are estimated for selected countries. The empirical results show that changes in domestic food production, coupled with income, trade, exchange rate and monetary policies have significant impacts on real food prices, with wide implications for food availability and food security in the region.

Suggested Citation

  • Joseph Kargbo, 2000. "Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1373-1389.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1373-1389
    DOI: 10.1080/00036840050151467
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    2. Koester, Ulrich, 1986. "Regional cooperation to improve food security in southern and eastern African countries:," Research reports 53, International Food Policy Research Institute (IFPRI).
    3. Paul Streeten, 1987. "What Price Food?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-18921-2, September.
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    1. Yusuf Soner Baskaya & Tugrul Gurgur & Fethi Ogunc, 2008. "Islenmis Gida Fiyatlarini Belirleyen Faktorler," Working Papers 0809, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    2. Joseph M. Kargbo, 2004. "Purchasing Power Parity And Exchange Rate Policy Reforms In Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(2), pages 258-281, June.
    3. Monteiro, Nathalia & Altman, Ira & Lahiri, Sajal, 2012. "The impact of ethanol production on food prices: The role of interplay between the U.S. and Brazil," Energy Policy, Elsevier, vol. 41(C), pages 193-199.
    4. Emediegwu, Lotanna Ernest, 2023. "Assessing the (a)symmetric effect of global climate anomalies on food prices: Evidence from local prices," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334555, Agricultural Economics Society - AES.
    5. Asharani Samal & Mallesh Ummalla & Phanindra Goyari, 2022. "The impact of macroeconomic factors on food price inflation: an evidence from India," Future Business Journal, Springer, vol. 8(1), pages 1-14, December.
    6. Shahnoushi, Naser & Henneberry, Shida Rastegari & Manssori, Hooman, 2009. "An Examination of the Relationship between Food Prices and Government Monetary Policies in Iran," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46078, Southern Agricultural Economics Association.
    7. Catherine Laroche-Dupraz & Marilyne Huchet-Bourdon & Anned-Linz Senadin, 2012. "Impact du taux de change sur la sécurité alimentaire des pays en développement," Post-Print hal-02746844, HAL.
    8. Kargbo, J.M., 2005. "Impacts of monetary and macroeconomic factors on food prices in West Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-20, June.
    9. Kargbo, Joseph M., 2007. "Food imports and foreign exchange constraints under macroeconomic adjustment programs in West Africa," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 81-85.
    10. Khalid Mushtaq & Abdul Ghafoor & Abedullah & Farhan Ahmad, 2011. "Impact of Monetary and Macroeconomic Factors on Wheat Prices in Pakistan: Implications for Food Security," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 95-110, Jan-Jun.
    11. Adom, Philip Kofi, 2014. "Determinants of food availability and access in Ghana: what can we learn beyond the regression results?," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), pages 1-12, December.
    12. Paul Alagidede & George Tweneboah & Anokye M. Adam, 2008. "Nominal Exchange Rates and Price Convergence in the West African Monetary Zone," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(3), pages 181-198, December.
    13. Peterson Owusu Junior & Anokye M. Adam & George Tweneboah, 2017. "Co-movement of real exchange rates in the West African Monetary Zone," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1351807-135, January.

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