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COVID-19 policy responses, mobility, and food prices: Evidence from local markets in 47 low to middle income countries

Author

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  • Dietrich, Stephan

    (UNU-MERIT, Maastricht University)

  • Giuffrida, Valerio

    (UNU-MERIT, and Research Assessment and Monitoring Division, UN World Food Programme)

  • Martorano, Bruno

    (UNU-MERIT, Maastricht University)

  • Schmerzeck, Georg

    (Department of Philosophy, Linguistics and Theory of Science, University of Gothenburg)

Abstract

Governments around the world have taken drastic measures to contain the spread of the new Coronavirus. Policy responses to the pandemic could affect local food prices in sensitive ways. We hypothesize that mobility restrictions reduce trade, which increases food price dispersion and prices in regionally integrated markets, but not in segmented markets. We use WFP price data of 798 retail markets in 47 low to middle income countries to test if and how food prices were affected by the stringency of COVID- 19 measures. We assess market segmentation based on pre-COVID-19 price data and measure government responses using the Oxford Coronavirus Government Response Tracker. Our results show that more stringent policy responses increase food prices for integrated and less remote markets but not for segmented markets. The impact of the stringency of policy reposes on food prices is mediated by reductions in mobility and moderated by markets' pre-Corona dependency on trade.

Suggested Citation

  • Dietrich, Stephan & Giuffrida, Valerio & Martorano, Bruno & Schmerzeck, Georg, 2021. "COVID-19 policy responses, mobility, and food prices: Evidence from local markets in 47 low to middle income countries," MERIT Working Papers 2021-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2021008
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    References listed on IDEAS

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    Cited by:

    1. Iacoella, Francesco & Justino, Patrica & Martorano, Bruno, 2021. "Do pandemics lead to rebellion? Policy responses to COVID-19, inequality, and protests in the USA," MERIT Working Papers 2021-014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Timiryanova, Venera & Krasnoselskaya, Dina, 2022. "Влияние пандемии Сovid-19 на пространственную динамику продовольственных цен [Covid-19 impact on spatial food prices dynamics]," MPRA Paper 114638, University Library of Munich, Germany.

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    More about this item

    Keywords

    COVID-19; Prices; Food; Market Integration; Public Policy;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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