Food Price Spikes, Price Insulation, and Poverty
AbstractThis paper has two purposes. It first considers the impact on world food prices of the changes in restrictions on trade in staple foods during the 2008 world food price crisis. Those changesâ€”reductions in import protection or increases in export restraintsâ€”were meant to partially insulate domestic markets from the spike in international prices. We find that this insulation added substantially to the spike in international prices for rice, wheat, maize and oilseeds. As a result, while domestic prices rose less than they would have without insulation in some developing countries, in many other countries they rose more than in the absence of such insulation. The paperâ€™s second purpose it to estimate the combined impact of such insulating behavior on poverty in various developing countries and globally. We find that the actual poverty-reducing impact of insulation is much less than its apparent impact, and that its net effect was to increase global poverty in 2008 by 8 million, although this increase was not significantly different from zero. Since there are domestic policy instruments such as conditional cash transfers that could now provide social protection for the poor far more efficiently and equitably than variations in border restrictions, we suggest it is time to seek a multilateral agreement to desist from changing restrictions on trade when international food prices spike.
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.
Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2013-11.
Length: 50 pages
Date of creation: 2013
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/publications/
More information through EDIRC
Other versions of this item:
- Anderson, Kym & Ivanic, Maros & Martin, Will, 2013. "Food Price Spikes, Price Insulation, and Poverty," CEPR Discussion Papers 9555, C.E.P.R. Discussion Papers.
- Kym Anderson & Maros Ivanic & Will Martin, 2013. "Food Price Spikes, Price Insulation and Poverty," NBER Working Papers 19530, National Bureau of Economic Research, Inc.
- Anderson, Kym & Ivanic, Maros & Martin, Will, 2013. "Food price spikes, price insulation, and poverty," Policy Research Working Paper Series 6535, The World Bank.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper 48483, World Bank.
- Ivanic, Maros & Martin, Will & Zaman, Hassan, 2011.
"Estimating the short-run poverty impacts of the 2010-11 surge in food prices,"
Policy Research Working Paper Series
5633, The World Bank.
- Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
- Kym Anderson & Signe Nelgen, 2012.
"Agricultural trade distortions during the global financial crisis,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 28(2), pages 235-260, SUMMER.
- Anderson, Kym & Nelgen, Signe, 2012. "Agricultural trade distortions during the global financial crisis," CEPR Discussion Papers 9086, C.E.P.R. Discussion Papers.
- Kym Anderson, 2012. "Agricultural Trade Distortions During the Global Financial Crisis," Departmental Working Papers 2012-05, The Australian National University, Arndt-Corden Department of Economics.
- Alderman, Harold & Yemtsov, Ruslan, 2013. "How can safety nets contribute to economic growth ?," Policy Research Working Paper Series 6437, The World Bank.
- Christophe Gouel & Sébastien Jean, 2012.
"Optimal Food Price Stabilization in a Small Open Developing Country,"
2012-01, CEPII research center.
- Gouel, Christophe & Jean, Sebastien, 2012. "Optimal food price stabilization in a small open developing country," Policy Research Working Paper Series 5943, The World Bank.
- Anderson, Kym & Martin, Will, 2011.
"Export Restrictions and Price Insulation During Commodity Price Booms,"
CEPR Discussion Papers
8494, C.E.P.R. Discussion Papers.
- Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
- Martin, Will & Anderson, Kym, 2011. "Export restrictions and price insulation during commodity price booms," Policy Research Working Paper Series 5645, The World Bank.
- Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007.
"New Evidence on the Urbanization of Global Poverty,"
Population and Development Review,
The Population Council, Inc., vol. 33(4), pages 667-701.
- Ravallion, Martin & Chen, Shaohua & Sangraula, Prem, 2007. "New evidence on the urbanization of global poverty," Policy Research Working Paper Series 4199, The World Bank.
- Christine D. Lasco & Robert J. Myers & Richard H. Bernsten, 2008. "Dynamics of rice prices and agricultural wages in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 339-348, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.