The impacts of the global food and financial crises on household food security and economic well-being: evidence from Bangladesh
AbstractThis paper presents the first household-level study to examine the combined impacts of the global food and financial crises on household food security and economic well-being in a developing country. Using longitudinal survey data of 1,800 rural households from 12 districts of Bangladesh over the period 2007–2010, we estimated a three-stage hierarchical logit model to identify the key sources of household food insecurity. A difference-in-difference estimator was then employed to compare pre- and post-crises expenditure for those households who experienced acute food shortages and those who managed to avoid the worst impacts of the crises. On the basis of our results we conclude that: (1) the soaring food prices of 2007–2008 unequivocally aggravated food insecurity in the rural areas of Bangladesh in 2008; (2) there was some weak evidence to suggest that the global economic downturn, which followed the global food crisis, contributed towards worsening food insecurity in 2009; (3) the adverse impacts of these crises appeared to have faded over time due to labor and commodity market adjustments, regional economic growth, and domestic policy responses, leaving no profound, long-lasting impacts on households’ economic well-being; and (4) although the immediate adverse consequences of rising food prices were borne disproportionately by the poor and farming communities, the longer term consequences were distributed more evenly across the rich and poor and, in general, were favorable for the farming community.
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 University Library of Munich, Germany in its series MPRA Paper with number 47859.
Date of creation: 27 Jun 2013
Date of revision:
Food security; Food price shocks; financial crises; Discrete choice modeling; Household survey data; Economic welfare; Bangladesh;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- 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:
- NEP-AGR-2013-07-15 (Agricultural Economics)
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CWA-2013-07-15 (Central & Western Asia)
- NEP-DCM-2013-07-15 (Discrete Choice Models)
- NEP-DEV-2013-07-15 (Development)
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.:
- Verpoorten, Marijke & Arora, Abhimanyu & Swinnen, Jo, 2012.
"Self-Reported Food Insecurity in Africa During the Food Price Crisis,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/343967, Katholieke Universiteit Leuven.
- Verpoorten, Marijke & Arora, Abhimanyu & Stoop, Nik & Swinnen, Johan, 2013. "Self-reported food insecurity in Africa during the food price crisis," Food Policy, Elsevier, vol. 39(C), pages 51-63.
- Verpoorten, Marijke & Arora, A. & Stoop, Nik & Swinnen, Jo, 2013. "Self-reported food insecurity in Africa during the food price crisis," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/375400, Katholieke Universiteit Leuven.
- Marijke Verpoorten & Abhimanyu Arora & Johan F.M. Swinnen, 2012. "Self-Reported Food Insecurity in Africa During the Food Price Crisis," LICOS Discussion Papers 30312, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Arora, Abhimanyu & Swinnen, Johan F.M. & Verpoorten, Marijke, 2012. "Self-Reported Food Insecurity in Africa During the Food Price Crisis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126897, International Association of Agricultural Economists.
- Migotto, Mauro & Davis, Benjamin & Carletto, Gero & Beegle, Kathleen, 2006.
"Measuring Food Security Using Respondents' Perception of Food Consumption Adequacy,"
Working Paper Series
RP2006/88, World Institute for Development Economic Research (UNU-WIDER).
- Mauro Migotto & Benjamin Davis & Gero Carletto & Kathleen Beegle, 2005. "Measuring Food Security Using Respondents’ Perception of Food Consumption Adequacy," Working Papers 05-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- De Hoyos, Rafael E. & Medvedev, Denis, 2009.
"Poverty effects of higher food prices : a global perspective,"
Policy Research Working Paper Series
4887, The World Bank.
- Rafael E. de Hoyos & Denis Medvedev, 2011. "Poverty Effects of Higher Food Prices: A Global Perspective," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 387-402, 08.
- Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
- Raihan, Selim, 2013. "The political economy of food price policy: The case of Bangladesh," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
- Kenneth Harttgen & Stephan Klasen, 2012. "Analyzing Nutritional Impacts of Price and Income Related Shocks in Malawi and Uganda," Working Papers 2012-014, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
- Debapriya Bhattacharya & Shouro Dasgupta & Dwitiya Jawher Neethi, 2012. "Assessing the Impact of the Global Economic and Financial Crisis on Bangladesh: An Intervention Analysis," CPD Working Paper 97, Centre for Policy Dialogue (CPD).
- Headey, Derek D., 2013.
"The impact of the global food crisis on self-assessed food security,"
Policy Research Working Paper Series
6329, The World Bank.
- Derek D. Headey, 2013. "The Impact of the Global Food Crisis on Self-Assessed Food Security," World Bank Economic Review, World Bank Group, vol. 27(1), pages 1-27.
- World Bank, 2011. "Migration and Remittances Factbook 2011 : Second Edition," World Bank Publications, The World Bank, number 2522.
- Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.