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Impact of soaring food price in Ethiopia: Does location matter?

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Author Info

  • Ulimwengu, John M.
  • Workneh, Sindu
  • Paulos, Zelekawork

Abstract

"Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices. In this paper, we first establish evidence of regional price heterogeneity across Ethiopia. We also applied the Johansen test for market integration over 95 local maize markets and found that none of the Ethiopian regional markets for maize is integrated to the world market. However, there is significant short-term price effects between the world maize market and some Ethiopian regional markets. Using the Almost Ideal Demand System, we estimate loss in household consumption and calorie intake as induced by food price increases. The results suggest a great deal of heterogeneity across regions as well as between rural and urban areas. Studies that fail to account for the characteristics of household demand across locations are more likely to induce misleading policy recommendations. " from authors' abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 846.

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Date of creation: 2009
Date of revision:
Handle: RePEc:fpr:ifprid:846

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Related research

Keywords: Price; Integration; Demand; Elasticity; Poverty; Food prices; maize;

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Cited by:
  1. Loening, Josef L. & Durevall, Dick & Ayalew Birru, Yohannes, 2009. "Inflation Dynamics and Food Prices in an Agricultural Economy: The Case of Ethiopia," Working Papers in Economics 347, University of Gothenburg, Department of Economics.
  2. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
  3. Maes, Kenneth & Kalofonos, Ippolytos, 2013. "Becoming and remaining community health workers: Perspectives from Ethiopia and Mozambique," Social Science & Medicine, Elsevier, vol. 87(C), pages 52-59.
  4. Hadley, Craig & Linzer, Drew A. & Belachew, Tefera & Mariam, Abebe Gebre & Tessema, Fasil & Lindstrom, David, 2011. "Household capacities, vulnerabilities and food insecurity: Shifts in food insecurity in urban and rural Ethiopia during the 2008 food crisis," Social Science & Medicine, Elsevier, vol. 73(10), pages 1534-1542.
  5. Tefera, Nigussie, 2012. "Welfare Impacts of Rising Food Prices in Rural Ethiopia: a Quadratic Almost Ideal Demand System Approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126698, International Association of Agricultural Economists.
  6. Admassie, Assefa, 2013. "The political economy of food price: The case of Ethiopia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Mezgebo, Taddese, 2009. "A multivariate approach for identification of optimal locations with in Ethiopia’s wheat market to tackle soaring inflation on food price," MPRA Paper 18663, University Library of Munich, Germany.
  8. Laura Kiku Rodriguez-Takeuchi & Katsushi S. Imai, 2011. "Food Price Surges and Poverty in Urban Colombia: New Evidence from Household Survey Data," Discussion Paper Series DP2011-33, Research Institute for Economics & Business Administration, Kobe University.
  9. Woldie, Getachew Abebe & Siddig, Khalid, 2009. "The impact of banning export of cereals in response to soaring food prices: Evidences from Ethiopia using the new GTAP African database," MPRA Paper 18241, University Library of Munich, Germany.
  10. Durevall, Dick & Loening, Josef L. & Ayalew Birru, Yohannes, 2013. "Inflation dynamics and food prices in Ethiopia," Journal of Development Economics, Elsevier, vol. 104(C), pages 89-106.
  11. Durevall, Dick & Loening, Josef L. & Birru, Yohannes A., 2010. "Inflation Dynamics and Food Prices in Ethiopia," Working Papers in Economics 478, University of Gothenburg, Department of Economics, revised 03 Jun 2013.
  12. repec:laf:wpaper:201106 is not listed on IDEAS
  13. Goetz, Linde & Glauben, Thomas & Brummer, Bernhard, 2010. "How Did Policy Interventions In Wheat Export Markets In Russia And Ukraine During The Food Crisis 2007/2008 Influence World Market Price Transmission?," 50st Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93952, German Association of Agricultural Economists (GEWISOLA).
  14. Mezgebo, Taddese, 2009. "A multivariate approach for identification of optimal locations with in Ethiopia’s wheat market to tackle soaring inflation on food price (Extended version)," MPRA Paper 17960, University Library of Munich, Germany.
  15. Hadley, Craig & Stevenson, Edward Geoffrey Jedediah & Tadesse, Yemesrach & Belachew, Tefera, 2012. "Rapidly rising food prices and the experience of food insecurity in urban Ethiopia: Impacts on health and well-being," Social Science & Medicine, Elsevier, vol. 75(12), pages 2412-2419.
  16. Spielman, David J. & Byerlee, Derek & Alemu, Dawit & Kelemework, Dawit, 2010. "Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles," Food Policy, Elsevier, vol. 35(3), pages 185-194, June.
  17. Julius Kotir, 2011. "Climate change and variability in Sub-Saharan Africa: a review of current and future trends and impacts on agriculture and food security," Environment, Development and Sustainability, Springer, vol. 13(3), pages 587-605, June.
  18. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 1106, Larefi, Université Bordeaux 4.
  19. Baltzer, Kenneth, 2013. "International to domestic price transmission in fourteen developing countries during the 2007-08 food crisis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  20. von Braun, Joachim & Tadesse, Getaw, 2012. "Global Food Price Volatility and Spikes: An Overview of Costs, Causes, and Solutions," Discussion Papers 120021, University of Bonn, Center for Development Research (ZEF).
  21. Minot, Nicholas & Dewina, Reno, 2013. "Impact of food price changes on household welfare in Ghana:," IFPRI discussion papers 1245, International Food Policy Research Institute (IFPRI).
  22. Delphine Boutin, 2011. "D'une crise à l'autre : mesurer l'impact des prix alimentaires sur la pauvreté," Working Papers hal-00637608, HAL.

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