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Responding to High Commodity Prices

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  • Craig Sugden

Abstract

The recent commodity price boom resulted from rising demand in the face of a long period of low supply growth and market distortions. Structural factors are expected to return international commodity prices to relatively high levels as the global economy recovers. The Asian and Pacific economies and the region's poor will be among the most exposed to a rebound in prices. The recent response to high commodity prices can be improved upon. At the global level, the priority for Asian and Pacific governments is to seek a commitment to lessening distortions favouring bio-fuels. At the regional level, there is a need to address the use of trade restrictions on food commodities in Asia, notably rice. At a national level, the long-term neglect of the rural economy warrants correction; and efforts to expand and make social safety nets more 'market friendly' are called for. Copyright © 2009 The Author. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.

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  • Craig Sugden, 2009. "Responding to High Commodity Prices," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 79-105, May.
    • Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:79-105
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    File URL: http://hdl.handle.net/10.1111/j.1467-8411.2009.01224.x
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    2. Naeem, Muhammad Abubakr & Karim, Sitara & Hasan, Mudassar & Lucey, Brian M. & Kang, Sang Hoon, 2022. "Nexus between oil shocks and agriculture commodities: Evidence from time and frequency domain," Energy Economics, Elsevier, vol. 112(C).
    3. Yu, T. Edward & Tokgoz, Simla & Wailes, Eric & Chavez, Eddie C., 2017. "A quantitative analysis of trade policy responses to higher world agricultural commodity prices:," IFPRI book chapters, in: Bouët, Antoine & Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 11, International Food Policy Research Institute (IFPRI).
    4. Matthew Dornan, 2015. "Renewable Energy Development in Small Island Developing States of the Pacific," Resources, MDPI, vol. 4(3), pages 1-17, July.
    5. Abd Azis Muthalib & Pasrun Adam & Rostin Rostin & Zainuddin Saenong & La Ode Suriadi, 2018. "The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 37-42.
    6. Halil Simdi & Hakan Tunahan, 2016. "The Power Of Trade Costs Over International Trade: Causality Analysis In Frequency Domain For Turkey," Journal Articles, Center For Economic Analyses, pages 41-50, December.
    7. Zaghum Umar & Mariya Gubareva & Muhammad Naeem & Ayesha Akhter, 2021. "Return and volatility transmission between oil price shocks and agricultural commodities," PLOS ONE, Public Library of Science, vol. 16(2), pages 1-18, February.
    8. Yu-chin Chen & Kenneth Rogoff & Barbara Rossi, 2009. "Predicting Agri-Commodity Prices: an Asset Pricing Approach," Working Papers UWEC-2010-02, University of Washington, Department of Economics.
    9. Dornan, Matthew & Shah, Kalim U., 2016. "Energy policy, aid, and the development of renewable energy resources in Small Island Developing States," Energy Policy, Elsevier, vol. 98(C), pages 759-767.
    10. Dornan, Matthew & Jotzo, Frank, 2015. "Renewable technologies and risk mitigation in small island developing states: Fiji’s electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 35-48.
    11. Pasrun Adam & Rosnawintang Rosnawintang & La Ode Saidi & La Tondi & La Ode Arsad Sani, 2018. "The Causal Relationship between Crude Oil Price, Exchange Rate and Rice Price," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 90-94.
    12. Ian Gillson & Amir Fouad, 2015. "Trade Policy and Food Security : Improving Access to Food in Developing Countries in the Wake of High World Prices," World Bank Publications - Books, The World Bank Group, number 20537, December.

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