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Evaluating the Causes of Rising Food Prices in Low and Middle Income Countries

  • Yeboah, Osei-Agyeman
  • Shaik, Saleem
  • Quaicoe, Obed
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    The effects of population, income, prices of major inputs, and exchange rate of the U.S. dollar on the prices of three key agricultural and food commodities (feed grains, oilseed, and fruits) for 13 low-income countries and seven middle-income countries were evaluated. Given the short time period, a modified seeming unrelated regression-vector autoregressive model that incorporates the lagged exogenous variables property of time series models and the system of equation estimation is employed in the analysis. The study finds no single factor that persistently explains all soaring food prices as reported in the literature. The only factor that persistently explains soaring food prices are the contemporaneous and one-year lagged exchange rates and income.

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    File URL: http://purl.umn.edu/130288
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    Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

    Volume (Year): 44 (2012)
    Issue (Month): 03 (August)
    Pages:

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    Handle: RePEc:ags:joaaec:130288
    Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm

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    1. Ahmed, Akhter U. & Hill, Ruth Vargas & Smith, Lisa C. & Frankenberger, Tim, 2007. "Characteristics and causes of severe poverty and hunger:," 2020 vision briefs BB02 Special Edition, International Food Policy Research Institute (IFPRI).
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